question archive As an incentive for customers to pay their accounts promptly, a business may offer its customers: a
As an incentive for customers to pay their accounts promptly, a business may offer its customers: a
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As an incentive for customers to pay their accounts promptly, a business may offer its customers:
a. a sales discount.
b. free delivery.
c. a sales allowance.
d. a sales return.
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Answer choice: A. a sales discount.
Explanation:
A business may offer its customers a discount for paying their invoice early. The terms are usually expressed on the invoice sent to the customer. For example, a business may send terms of 2/10, n/30. This means that if the customer pays within 10 days they receive a 2% discount. If not, the invoice is due in 30 days.
