If a company is given credit terms of 2/10, n/30, it should pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill. pay within the discount period and recognize a savings. recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time.
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If a company is given credit terms of 2/10, n/30, it should pay within the credit period but don't t...
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