What does 1/10 net 30 mean?
Understand the Problem
The question is asking for an explanation of the term '1/10 net 30', which is a financial term used in invoicing. This term indicates payment terms whereby the buyer can take a 1% discount on the invoice if paid within 10 days; otherwise, the net amount is due in 30 days.
Answer
A trade credit term indicating a 1% discount if payment is made within 10 days. Otherwise, full payment is due within 30 days.
The final answer is a trade credit term indicating a 1% discount if payment is made within 10 days. Otherwise, the full payment is due within 30 days.
Answer for screen readers
The final answer is a trade credit term indicating a 1% discount if payment is made within 10 days. Otherwise, the full payment is due within 30 days.
More Information
These terms are often used in business to encourage early payment by offering a small discount.
Tips
A common mistake is misinterpreting the discount and payment timelines. Ensure to apply the discount only if the payment is within the specified period.
Sources
- Understanding Cash Discount Terms - creditguru.com
- Trade Credit - Wikipedia - en.wikipedia.org
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