The notation "2% 10, net 30" indicates that a 2% discount can be taken by the buyer only if payment is received in full within 10 days of the date of the invoice, and that full payment is expected within 30 days, For example, if a $1000 invoice has the terms, "2% 10, net 30", the buyer can take a 2% discount ($1000 x . 2/10 Net 30. “n/30” states that if the buyer does not pay the (full) invoice amount within the 10 days to qualify for the discount, then the net amount is due within 30 days after the sales invoice date. The amount of the discount would. Credit terms of 1/10, n/30 mean that: a. 2/10 Net30: The net 30 invoice payment terms offer a 2%. It means that if the company/person pays by the 10th of the. B. In this case, net 30 means the vendor wants to be paid within 30 days from the invoice date. Merchandising companies. The invoice indicates the invoice date and, preferably, the payment due date. 2021. For instance, "2/15 net 30" means a 2% discount if paid within 15 days, instead of the standard 30. Proposition 3 on barring an individual wealth tax: Passed with 68% for, 32% against. A sales invoice of $2,000 has terms of 2/15, n/30. The term 2/10, net 30 means customers paying within ______ percent discount. The new payment terms would then be 2% 30, net 90. The cash discount term "2/10, net 30" means that: O the invoice is dated February 10 and must be paid by February 30, the buyer will, in effect, be borrowing at a 36 percent annual interest rate if he takes 30 days to pay the Invoice the buyer must make a 2 percent down payment--with the balance due in 10 to 30 days. Of course, this also applies to other. What does 2/10 net 30 mean? An invoice with 2/10 Net 30 payment terms is due within 30 days as with all invoices with net 30 terms, but with the note that if paid off within 10. Net Cost Method 12/ 1 Inventory . company does in fact decide to exercise its option to draw down cash from its . The credit terms 2/10, n/30 mean that the customer may take a $2. After the first 10 days, the full invoice amount is due in 30 days without the 2% discount according to the terms for 2/10 net 30. com summarize and list the top articles with the question. This means that the buyer can take an early payment discount of 2% of the amount owed if the amount is remitted within 10 days instead of the customary 30 days. 20 (+ Bonus) Net-30 Vendors That Report to Commercial Credit. But, depending on the industry you operate. In this case, if the amount due is paid within 10 days, the customers get a 2% discount. 2%/10 days, Net 30 terms (2/10 Net 30) 2% discount if you pay within 10 days. 0204 by 18 to arrive at a cost of credit of 36. QUESTION 1 What does the invoice term 2/10, Net 30 mean? The buyer can take a 30% discount for paying in 2 days. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term. Indicate the terms in plain English. The seller offers no prompt payment discount. This discount is intended to encourage customers to pay more quickly. That tool is net 30 and net 60 vendor accounts. What does net 2/10 30 mean? Like the net 3/10 30, net 2/10 30 is an early payment discount. ”. Businesses will often offer a discount with this situation, to encourage the customer to pay quicker. In terms of the spread, the " - " always refers to the favorite and the " + " always refers to the underdog. The formula reads =SUM (D42:D43). 7% for terms that allow a 2% discount if paid within 10 days, or full payment in 30 days. The most common terms for credit sales are net 10, net 30 and net 60. The invoice indicates the invoice date and, preferably, the payment due date. Here are types of payment terms for businesses: Net 7, 10, 15, 30, 60, or 90: With this payment term, payment is expected within 7, 10, 15, 30, 60, or 90 calendar days from the invoice date. 2/10 net 30 is a trade creditextended to the buyer from the seller. This is a relatively common term of payment utilized by companies in the United States. What do the credit terms of 2/10 net 30 mean? 2/10 net 30 is a trade credit offered by the seller. But since your firm is neither taking discounts nor paying on. As a result, when you create a N/10 EOM, you must pay the invoice in full 10 days. This is essential when vendors have accounts receivable turnover cycles which exist longer than preferred. Net 30 is a type of payment agreement where the customer agrees to pay the invoice within 30 days of receipt. What does 2/10 net 30 mean in accounting? 2/10 net 30 Meaning. Something can’t be an acre long any more than it can be a gallon wide. While some companies may opt to pay these invoices well before the 30-day mark, many will not unless you offer incentives to do so. If you’ve ever come across the phrase ‘2/10 net 30’ and felt like banging your head against a wall trying to. For instance, if you set Net 30 as your payment term, then the customer is expected to pay for the products they purchased within 30 days from the date of delivery of the product. classification. It’s a term you’ll typically see written on an invoice after you’ve received the product or service, but it can also pop up in contracts. For example, request a discount of 2/10 net 30 if your company has net 30 terms. What does 30 day nett terms mean? 30-day net terms means this is the amount of time a business has to pay an invoice. Instead of a 2% discount, the vendor could. For instance, if you generate a bill on July 15th and your consumer agrees for a Net 30 end of the month (EOM), your consumer has to pay on or before August 30th. c. Extend highlight invoice, fill out, and edit your documents using a simple and straightforward interface. This discount is intended to encourage customers to pay more quickly. d. This means you, as the business, are offering your customer a short-term, 0% interest loan. Your firm is not taking discounts, but is paying after 22 days instead of Day 30. After those 10 days pass, the full invoice amount is due within 30 days without the 2% discount. The AR balance is based on the average number of days in which revenue will be received. The discount and terms can be negotiated and vary by customer. only that payment in full is due 60 days after date of the invoice. For example, you can bet the Dallas Cowboys as a -7 point favorite to beat the Green Bay Packers or the Packers as a +7 point underdog. The 2/10 Net 30 is a popular method of extending trade credits to buyers. Like the example above, a static discount offer usually ranges from 1-2% and the terms range from 30-60 days. In the business world, net days is a fancy term for the number of days you have to make a payment. I then sum forecasted sales and COGS to calculate “Gross Profit”, located in cell D44. Net 30 terms are often combined with a cash discount for early settlement. If FIN222 Ltd chooses to take the discount offered, it must obtain a bank loan to afford it. You put in payment terms of 30 days for that client, or set it on an invoice-by-invoice basis. It means once you have earned at least $100, you will be paid on a NET15 basis, meaning 15 days after the end of that month. This early payment discount formula incentivizes buyers to settle their invoices promptly. This discount is 2% of the total balance and only applies if the. Indifferent among all optionsStep by Step Answer: Answer rating: 40% (10 reviews) If a company declares a 4 15 net 30 means of sale it si…. Line of credit. the buyer will, in effect, be borrowing at a 36 percent annual interest rate if he takes 30 days to pay the invoice. ($500/$490) – 1 = 2. Simply put, Net Working Capital (NWC) is the difference between a company’s current assets and current liabilities on its balance sheet. For example, giving a 2% discount to clients who settle their accounts within 10 days is quite common. For $30/mo, you can view your complete personal and business credit files at D&B, Experian, Equifax, and Transunion. FALSE; If the payment is made within ten days, the “2/10” means a 2% discount. The number after the net indicates the. A firm has just received an invoice for $1,000 with the following terms: 3/10, net 30. , "net 10 days") are payment terms for trade credit,. Payment terms offered by a vendor are shown on a customer’s purchase order (PO) and invoice. Net 30 and Net 90 are the most common payment terms. Also defines as total current assets, List of typical current assets, _____ are measured in terms of liquidity and more. COD: This. This means that if the buyer is able to fulfill the invoice amount of the. The terms which indicate when payment is due for sales made on account (or credit). 2/10 Net 30 Amount = Total Receivables – Total Discount. Invoice date: October 1. For example, under 2/10 net 30 terms, you would divide 2% by 98% to arrive at 0. Try this powerful PDF editing tool and improve your workflow right away. The great thing about Office Garner is that you can make a formal request for a credit increase after 3 paid-in-full net 30 invoices. answer the question what does 1 10 net 30 mean, which will help you get the most accurate answer. So, if the invoice is dated September 1 of this. What is 2 10, N 30?Definition: 2 10, Net 30 is a cash discount term where customers have 30 days to pay for purchase but can receive a two percent discount i. When this term is included on an invoice, it means the customer has 30 days to pay the total. If not, then they’ve got 30 days to pay. Net 30 allows customers to pay early or anytime before the 30 days expire, but after that, the account becomes past due. Payment is due within 10, 15, 30, 60, or 90 days. Terms in QuickBooks Desktop shows the number of days by which payment is due and sometimes include a discount for early payment. With that, they deal with the maintenance costs for the property. 10 percent discount for payment within 30 days. Otherwise you have to pay the full invoice amount in 60 days. This means that the customer can take an early payment discount of 2%. As an example, if the invoice amount is $500, calculate the 2/10 net 30 annualized interest rate: $500 x (100% – 2%) = $500 x 98% = $490. The customer suggested 2% 30 day terms. Other net payment terms in the normal course of business include Net 10, Net 15, and Net 60. e. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. number of days when the entire amount is due d. A 2/10 net 30 (also known as 2 10 net 30) means the balance will be discounted by 2% if the buyer makes a payment within the first ten days. What is a 2/10 net 30 quick payment discount and when takes it make sense for to business to application to? In other words, you can pay within 10 days and deduct 1% from the invoice amount or pay the full amount in 30 days. For example, if a business sells $10,000 worth of products and issues an invoice with Net 30 payment terms, the buyer has 30. Net monthly account. 2/10 Net 30 . Just like 1/10 Net 30, with terms of 2/10, n/30, the “2” represents 2%, the “10” represents 10 days, and the “30” represents 30 days. See full answer below. In this case if paid within 10 days a discount of 1000 x 1% = 10. After those 10 days pass, the full invoice amount is due within 30 days without the 2% discount according to the terms for 2/0 net 30. This discounted payment option means that if the invoice is paid within 15 days, rather than 10, a 1% discount is applied. Triple Net Lease: A triple net lease is a lease agreement that designates the lessee , which is the tenant, as being solely responsible for all the costs relating to the asset being leased, in. If a buyer is able to pay an invoice in full within the first ten days, they will receive a 2 percent discount on the net amount. The n stands for net and the first 10 is a. The 2/10 net 30 trade credit is a popular agreement between suppliers and buyers. If a $1000 invoice has the terms "net 30", the buyer must pay the full $1000 within 30 days - The notation "2% 10, net 30 "indicates that a 2% discount can be taken by the buyer only if payment is received in full within 10 days of the date of the invoice, and that full payment. Study with Quizlet and memorize flashcards containing terms like When does the warranty period begin?, Formal instrument that allows for extension of time, Who is required to report errors in the plans? and more. the buyer will, in effect, be borrowing at a 36 percent annual interest rate if he takes 30 days to pay the invoice. Net 30. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Otherwise, the full invoice amount is due in 30 days without a discount. The net 30 application takes five to 10 business days to process. So, when you see an invoice that states ‘3/10 net 30’, it means that customers can receive a 3% discount if they pay within 10 days. Additional 2% cash discount if paid with 10 days of the invoice date; net amount (Full Amount) is due in 30. In this case, the number “2” represents the percentage of discount offered, while “10” signifies the number of days within which the payment must be made to. A supplier offers a firm a 4/10, net 30 discount for early payment on a $1500 bill. What does 2/10 Net 30 mean? The term “Net 30” implies that the customer has to pay within 30 days. O. We would like to show you a description here but the site won’t allow us. Choosing Payment Terms . Using the proper document modifying tool, you will not take more time than is necessary for such a swift edit. Otherwise the full amount is due within 30 days. A vendor may use net 30 2/10 terms in order to encourage fast payment of invoices. In other words, Net 10, Net 20, Net 30 are forms of trade credit which specify. 2/10 net 30 means a discount for payment within 10 days. 2/10 net 30 means a discount for payment within 10 days. The Difference Between Net 15, Net 30, and Net 60. Therefore, Net 30 simply means the vendor wants to get paid within 30 calendar days after the invoice has been received. It is most commonly used to show the result of a calculation, for example 2 + 2 = 4, or in equations, such as 2 + 3 = 10 − 5. 02. So, for example, Net 15 means that the deadline is 15 days after the invoice is sent, and so on. 2/10, net 40 d. Technically, the seller is lending the buyer money. Net 15 is an invoice payment period that requires full payment to be made within 15 days. For tax year 2024, each of the seven rates will apply to the following new income tax brackets: 10%: Income up to $11,600 ($23,200 for married couples filing. If they wait to pay their invoice on days 11 through 30, they’ll pay the full amount. Go to +New, then Bill. 2/10 net 30 Calculation. 2/10 net 30 means that buyers are eligible to get a 2% discount on trade credit if the amount due is paid within 10 days. What effective annual interest rate does the firm earn when a customer does not take the discount?b. The customer suggested 2% 30 day terms. For example, if an invoice is dated January 1 and says “net 30,” the payment is due on or before January 30. 2/10 Net 30. The total bill is due in 10 days if the discount is not taken. I. It represents an agreement that the buyer will receive a 2% discount on the net. com summarize and list the top articles with the question. Walmart offers a Community Card that gives approved business organizations net 30 terms. For example, “2% 10th Prox Net 30” means a 2 percent discount can be taken if the bill is paid before…. Credit terms of 2/10, n/60 mean. It is popular among the sellers because of the mutually beneficial conditions embodied in it: The “2” in the term signifies a discount of 2%, and the “10” signifies a period of 10 days. Net 30 on an invoice means payment is due thirty days after the date. In case you need reference on how to setup or modify the payment terms, you can follow the steps below: Go to Lists at the top. For example, Net 30 means that a buyer must settle their account within 30 days of the date listed on the invoice. The difference between the various Net D payment terms is simply how many days someone has to pay. So. For $40/mo, they’ll add tradeline reporting of your membership fee, while the $50/mo plan will let. 2 days are entitled to a 10. The 2/10 net 30 trade credit is a popular agreement between suppliers and buyers. "2/10 net/30" is a term used in business credit transactions to describe common incentives suppliers offer to encourage early payment of invoices. The = equals symbol is used to show that the values on either side of it are the same. Net profit margin is the ratio of net profits to revenues for a company or business segment . Multiple Choice. Therefore, Net 30 simply means the vendor wants to get paid within 30 calendar days after the invoice has been received. The triple net (NNN) lease is a lease agreement structure where the tenant pays all of the operating expenses for the property. Typically expressed as a percentage, net profit margins show how much of each dollar collected by a. What does 2% Net 30 days mean? Jo McCann 05. Additionally it is referred to as n/30. Creative Analytics Net 30. For example, you could offer customers a payment term of “5% 10 net 30. To earn a 2 percent discount on the. In this case, the customer would save money by paying. A: Trade credit terms of 2/15, net 30 means the firm gets a 2% discount if it pays within 15 days. What does 2 percent 2nd 10th net 30 payment terms mean? stupud. What Does 2/10 Net 30 Mean? 2/10 Net 30 refers to the trade credit offered to a customer for the sale of goods or services. An acre is a measure of area, not of length. Trade Credit: A trade credit is an agreement in which a customer can purchase goods on account (without paying cash), paying the supplier at a later date. Change the credit terms offered to customers from 2/10 net 30 to 1/10 net 60. Vendors extend different types of trade credit terms to. a. You may also encounter net 15, net 45, net 60, and others. A net 30 account is a line of credit that vendors extend to their customers. You need to. If a buyer is able to pay an invoice in full within the first ten days, they will receive a 2 percent discount on the net amount. 2/10,n/30 E. *. Net 10 is a credit term, meaning services and products are sold in advance and the client pays later. 60 days End of Month. Net sales are the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. Sales tax at 8% 200 . So, if the buyer was offered. The purpose of this is to shorten accounts receivable cycles for those who provide credit terms. You will get burned. 01:48. It is so standard across the business world that, for example, clients in the UK have a legal obligation to pay their suppliers within 30 days. What does 2-10-10-2 mean? Information and translations of 2-10-10-2 in the most comprehensive dictionary definitions resource on the web. Q. Simply put, net 30 on an invoice means payment is due thirty days after the date. For example, if you invoice your client with a payment term of net 30 EOM on October 13th, the payment will be due on November 30th - 30 days after October 31st. The payment terms refer to the conditions under which a buyer has to pay-off the full value of the invoice. Answers (6) '2/10, net 30' is an example of:?This video covers the definition of 1%/10 Net 30 along with some useful information to help you understand this business term. For information about annuities and financial functions, see PV. If they reduce therefore, the net sales figure rises. What does 2/10/EOM, n/60 mean?-It means that a buyer who pays by the 10 th of the month following the month of purchase may deduct 2% discount from the invoice price. Assume Company A sold $10,000 worth of goods to Michael. You include payment terms on the invoice. This would be noted as “2%/10 Net 30” on the invoice. Examples of early payment discount terms are 2/10 net 90 or 2/20 net 90. 2 percent discount for payment within 10 days, or the full amount (less returns) due within 30 days. Net 30 payment terms on an invoice means the customer has 30 days to pay the full balance of the invoice. What Does 2 10, Net 30 Mean? Ah, the joys of owning a small business. 04% for the 20 days between day 10 and day 30. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Walmart . The rates currently are set at 10%, 12%, 22%, 24%, 32%, 35% and 37%. What does ‘3/10 net 30’ mean? Sometimes, net 30 invoice terms are coupled with a discount. Here are examples of net 30 payment terms combined with discounted rates for early payment. Some businesses expect payment much sooner, so you may also see net. It means that if the bill is paid within 10 days, there is a 2% discount. Learn why this is important for your business cash flow. Find the mean for a sample set or population data within seconds. Payment due on last day of the month following the one in which the invoice is dated. There are a few drawbacks. … Q: If a firm is given a trade credit terms of 2/15, net 30, then the cost to the firm failing to take…The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. How do you calculate 2/10 net 30? What does 2/10 net 30 mean? An invoice with 2/10 Net 30 payment terms is due within 30 days as with all invoices with net 30 terms, but with the note that if paid off within 10 days, the customer will receive a 2% discount. View the full answer. If they win by exactly two points, the bet would push and the stake would be returned with no winnings. Proposition 3 will prohibit an individual wealth or net worth tax — in other words,. See answer (1) Best Answer. 1 Percent of 10 NET 30 usage. After the first 10 days, the full invoice amount is due in 30 days without the 2% discount according to the terms for 2/10 net 30. )A firm offers terms of 1. You raise an invoice and date it for. Net 30 terms are often used when the supplier offers a discount for early payment (such as 2% 10 Net 30). You can take a 10% discount if you pay within 2 days, or the full amount is due within 30 days. 2/10, n/30 or 2/10, N 30 refer to the accounting term in which seller provides the cash discount to customers. Compare Your Financing Options With Confidence. Payment is due within 10, 15, 30, 60, or 90 days. Payment of the net amount outstanding on the invoice is due seven calendar days after the date of the invoice. It simply means the customer has 30 days to pay the total amount of their invoice. A little more detail: This refers to a purchase from a company on a charge account. In case, the customer paid within 10 days, the customer. All invoices are. cooperative advertising allowance. Net 60: The customer has 60 days to pay the invoice. Here's how to add a discount item. accuracy. The buyer will have to pay 10% more if they pay by credit and will get a 2% discount if they pay by cash in 30 days. In most cases, business owners will give their clients 30, 60, or 90 days to pay, also known as giving net-30, net-60 or net-90 terms. Simply put, 2/10 net 30 is a trade credit offered by the seller to the buyer for their purchase. It is popular among the sellers because of the mutually beneficial conditions embodied in it: The “2” in. So, when you see an invoice that states ‘3/10 net 30’, it means that customers can receive a 3% discount if they pay within 10 days. 04% for the 20 days between day 10 and day 30. Net 7, 10, 15, 30, 60, or 90. What Does 2/10 Net 30 Mean? 2/10 Net 30 refers to the trade credit offered to a customer for the sale of goods or services. The primary source of revenue for a wholesaler is. Next, I forecast all the expenses in rows 45 to 48 as a percentage of sales. In case you need reference on how to setup or modify the payment terms, you can follow the steps below: Another common application of prox payment terms is “Net 30th Prox,” which would mean payment was due in full on or before the 30th of the following month. Payment terms: 2/10 net 30 2 = This discount percentage is ONLY given when the buyer pays their invoice early (2% off total) 10 = The timeline after invoicing when the discount applies (up to 10 days) Net 30 = Normal, 30 day payment terms. Net 60 payment terms. The buyer receives a 2% discount on the net invoice amount when paid within 10 days. 1% discount is allowed if the bill is paid within 10 and 30 days. quantity discount. Net monthly account. That’s. This term helps businesses get their payments faster, especially those without a line of credit. Examples of early payment discount terms are 2/10 net 90 or 2/20 net 90. Once the customer starts paying on time, the business may extend longer payment terms like net 30 or net 60. Calculated amount of the discount @2% $ 50. Net 30 is a shorthand way to indicate on an invoice that payment is due 30 days from the invoice date. There’s more to the term "Net 30" than telling clients that their payment is due in 30. a. 2% 10 Net 30 : This is a variation of the Net 30 day’s terms. After those 10 days pass, the full invoice amount is due within 30 days without the 2%. cash discount. Some businesses offer incentives to clients, such as “2. 1/30 n/60 means that if you pay within 30 days you can deduct 1 percent from the invoice. 2/10 net 30 means a discount for payment within 10 days. (10 days in total discount period minus the 6 days since the invoice was submitted. Net 30: 2/10; Pay using a credit line. In other words, you can pay within 10 days and deduct 1% from the invoice amount or pay the full amount in 30 days. Which of the following credit terms would you prefer as a customer? Explain. Copy. However, this payment type offers a discount of. Breaking down ‘Net 30’. g. That’s where 2/10 net 30 comes into play. Shorter Terms. 2. True b. Step 2: The figure on the next page displays the invoice timeline. The term means that payment in full is due 30 days after the date of the invoice. 2%/10 days, Net 30 terms (2/10 Net 30) 2% discount if you pay within 10 days. The most common terms for credit sales are net 10, net 30 and net 60. if the invoice is paid within 10 days of its date, a 2% discount may be taken; otherwise the total amount is due in 60 days. The last term is n/30 or net 30, which means that payment is due within 30 days. A net 45 payment is a phrase that refers to an invoice that a customer must pay within 45 days. Another term for extending credit to customers is trade credit. Else, the full amount is due within 30 days. So, the due date will be within 30 full days of the invoice date. So for example, say you finally earned a total of $100 in May, you will then be paid all of your earnings NET15, so 15 days after May ends, June 15th. 1, payment is due on or before Oct. 98 x 100= 980 Accounts Payable. What does 2/10 net 30 mean on an invoice? 2/10 net 30 is a term that means buyers are eligible to receive a 2% discount on trade credit if the amount due is paid within 10 days. 2/10 Net 30 (2/10, n/30) means that the payment is still due in 30 days, but the customer will receive a 2% discount if the invoice is paid within 10 days. Net 30 is an invoicing payment term used commonly in the business world, where the 30 refers to the amount of days that your client has to pay the outstanding invoice. Instead of a 2% discount, the vendor could. It’s up to you to give the best term to customers. Net 30 is a term used in an invoice to indicate the time at which a vendor wants to receive payment for the product or service provided. g. How to Calculate How do you calculate 2/10 net 30? The math is quite simple with the first number ( 2) being the percentage discount of the invoice amount, while the second. 00 cash discount if she pays within 10 days. Study with Quizlet and memorize flashcards containing terms like Pharma sales when they have individuals go out and present about their product is known as?, What is the sum of all values a customer exchanges for the benefits or a service or product?, What is the only element in the marketing mix that produces revenue? and more. The ‘30’ in Net 30 discusses the length of time allowed for payment. These types of discounts can have many variations, but the calculations are the same: 1/15 Net 30: The buyer receives a 1% discount if they pay within 15 days. This answer is:Determine the annual financing cost of forgoing the cash discount under each of the following credit terms: a. In this case, the firm:Set up a NeweggBusiness account before having your primary account holder apply for credit terms. 2%/10 days, Net 30 terms (2/10 Net 30) 2% discount if you pay within 10 days. Otherwise, the total amount is. 1/10, net 25 e. The business will assign credit terms to each business-to-business purchase it allows customers to make on credit. Net 15: Similar to net 30, but the customer has 15 days to pay the invoice instead of 30. Net 60: The customer has 60 days to pay the invoice. In this case, the invoice is due within 30 days after receiving it, but 30 days doesn’t always fall on the end of a month. What does “2/10 net 30” mean? A customer enjoys a 2% discount if the amount due is paid within 10 days of receiving the invoice. Net 10 means payment is due 10 days after the invoice date. 02 = $20) and make a. 30 days End of Month. For example, if the terms are Net 15, then the customer must pay within 15 days. This is an addition to credit terms on your invoices. What does 2% 10 days net 30 days mean? For example, the payment term 2% 10 Days/Net 30 Days indicates that payment must be received within 30 days, and there is a 2% discount if it is received within 10. Net 30 refers to the amount owed in full, less any discounts and deductions. Otherwise, the amount is due in full 10 after 10 days. Accounts Receivable Turnover Ratio = $100,000 - $10,000 / ($10,000 + $15,000)/2 = 7.