Which of the following credit terms is the most advantageous to the purchaser of merchandise? A. 1/10, n/30.
B. 5/10, n/60.
C. 2/10, n/30.
D. 5/10, n/20.

There are different kinds of credit terms. The credit terms is the most advantageous to the purchaser of merchandise is 5,10, n/60.

Credit terms are simply known to be the payment terms that is listed out on the invoice at the time of buying goods.

It is said to be a form of an agreement that exist between the buyer and seller about the date and payment that is to be made for the goods that was bought on credit. Credit terms or simply called payment terms is used for all credit sales.

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5/10, n/60

Explanation:

• 1/10, n/30.

This means that the customer will be given 1% discount if he pays within 10 days, otherwise he or she has to pay the full amount in 30 days.

• 5/10, n/60.

This means that the customer will be given 5% discount if he pays within 10 days, otherwise he or she has to pay the full amount in 60 days

• 2/10, n/30

This means that the customer will be given 2% discount if he pays within 10 days, otherwise he or she has to pay the full amount in 30 days

• 5/10, n/20

This means that the customer will be given 5% discount if he pays within 10 days, otherwise he or she has to pay the full amount in 20 days.

Based on the above analysis, the best option is option B.

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