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Setler79 [48]
3 years ago
15

2/15 net 45 translates as​ ________. A. 45 percent of account due in 15​ days, payment prior to day 15 receives a 2 percent disc

ount B. 15 percent cash discount if paid in 2​ days, net 45minus day credit period C. 2 percent cash discount if paid prior to 15​ days, if customer does not take a cash​ discount, the balance is due in 45 days D. 2 percent of the balance is due in 15​ days, the remaining balance is due in 45 days
Mathematics
2 answers:
artcher [175]3 years ago
7 0

Answer:

C) 2% cash discount if paid prior to 15​ days, if customer does not take a cash​ discount, the balance is due in 45 days

Step-by-step explanation:

2/15 net 45, can be defined as the trade credit in which clients can

choose to either receive a 2% discount for payment to a

vendor within 15 days or pay the full amount (net) of their

accounts payable in 45 days, is extremely common in

business to business sales.

2/15 net 45 means a discount for payment within 15days. The

reason for this is to shorten accounts receivable cycles for

those who provide credit terms. This is essential when vendors

have accounts receivable turnover cycles which exist longer

than preferred. A business that offers a 2/15 net 45 discount is

expressing that it is more important to have cash as quickly as

possible than it is to have the full amount of their payable . The

fact that lack of cash is one of the main reasons businesses

fail makes these terms commonplace. Businesses love to offer

2/15 net 45 for 2 reasons: it makes customers happy while

speeding up cash cycles.

Elena-2011 [213]3 years ago
4 0

Answer:

C. 2 percent cash discount if paid prior to 15 days, if customer does not take a cash discount, the balance is due in 45 days.

Step-by-step explanation:

2/15 net 45 translates as 2 percent cash discount if paid prior to 15 days, if customer does not take a cash discount, the balance is due in 45 days.

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