what does 3/10- net 30 means in accounts payable term?
- Anonymous1 decade agoFavorite Answer
3% discount if paid in ten days. Due in 30 days.
- Anonymous4 years ago
3 10 Net 30Source(s): https://shrinke.im/a8YBG
- Anonymous1 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.
- 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:
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- 1 decade ago
3% discount if paid within 10 days. If not, the full amount is due within 30 days.