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WAEC Commerce 2023 Question 19

Question 19

Purchase and Sale of Goods

The term 2%/15 net 30 represents a

  1. A.cash discount.
  2. B.quantity discount.
  3. C.seasonal discount.
  4. D.trade discount.
Show the answer and explanation

Answer: A (cash discount.)

Explanation

'2%/15 net 30' means the buyer gets 2% off if he pays within 15 days; otherwise the full amount is due in 30 days. A discount for prompt payment is a cash discount.