The Terms '2/10, N/30' Appearing on an Invoice for the Sale/purchase

The terms '2/10, n/30' appearing on an invoice for the sale/purchase of inventories means that the buyer:

A) will receive a 10% discount if paid within 2 days of the invoice date, otherwise the full amount must be paid within 30 days of the invoice date.
B) will receive a 2% discount if paid within 10 days of the invoice date, otherwise the full amount must be paid within 30 days of the invoice date.
C) has 10 days from the invoice date to pay the full amount or a 2% surcharge will be applied and total amount owing must be paid within 30 days of invoice date.
D) has 2 days from the invoice date to pay the full amount or a 7% surcharge will be applied and total amount owing must be paid within 30 days of invoice date.

Correct Answer:

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