As your firm’s controller, you review an invoice that says “2/10, Net

QUESTION

As your firm’s controller, you review an invoice that says “2/10, Net 30.” What does that mean?

What will be an ideal response?

ANSWER

Answer: When an invoice says “2/10, Net 30,” that means that the buyer can take a 2% discount for paying the bill within 10 days, but in any case must pay within 30 days.
Explanation: “2/10, Net 30” is something you’d see on an invoice. This means that the buyer can take a 2% discount for paying the bill within 10 days, but in any case must pay within 30 days.