passwella.
Menu

JAMB Commerce 1999 Question 14

Question 14

Purchase and Sale of Goods

The term '5 Net 7' on an invoice means that

  1. A.5% discount will be allowed on the price charged if payment is made within seven days
  2. B.5% discount will be allowed on the price charged if payment is made after seven days
  3. C.5% surcharge will be made unless payment is made within seven days
  4. D.5% discount will be allowed on the price charged only if the goods are bought within seven days.
Show the answer and explanation

Answer: A (5% discount will be allowed on the price charged if payment is made within seven days)

Explanation

'5 net 7' means a 5% cash discount for payment within seven days.