Credit terms of 1/10, n/30 mean that
◦ 1% discount is allowed if the bill is paid within 10 days, or the entire amount is due within 30 days.
◦ a discount is allowed if the bill is paid within 30 days.
◦ a 1% discount is allowed if the customer pays the bill within 30 days.
◦ a discount is allowed if the bill is paid after 10 days.