Certified Materials and Resource Professional Practice

The term "2%/10 net 30" is a common expression used in vendor payment terms that indicates a vendor is offering a discount to encourage early payment. Specifically, it means that if the buyer pays the invoice within 10 days, they can take a 2% discount off the total amount due. If the buyer does not take advantage of this discount, the full invoice amount is due within 30 days from the invoice date. This incentivizes prompt payment, which improves cash flow for the vendor while offering the buyer a financial benefit for settling their account early. The other options do not accurately describe this term: bulk purchasing requirements do not pertain to payment terms; a penalty for late payment would typically specify additional charges, and a standard shipping charge is unrelated to payment terms altogether. Understanding these terms is crucial in managing vendor relationships and financial decisions effectively.