what does 3/10- net 30 means in accounts payable term?

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  • Anonymous
    1 decade ago
    Favorite Answer

    3% discount if paid in ten days. Due in 30 days.

  • Anonymous
    4 years ago

    3 10 Net 30

  • Anonymous
    1 decade ago

    Because the company receiving the money understands the time value of money and that this reduces doubtful accounts, they are willing to give a 3% discount if the company pays within ten days. Either way though, the entire amount is due in 30 days.

    I hope this helps.

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  • 5 years ago

    Harvard Company purchased equipment having an invoice price of $30,700. The terms of sale were 3/10, n/30, and Harvard paid within the discount period. In addition, Harvard paid a $195 delivery charge, $205 installation charge, and $963 sales tax. The amount recorded as the cost of this equipment is:

    Help please

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  • 1 decade ago

    3% discount if paid within 10 days. If not, the full amount is due within 30 days.

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