Question

rown's Hardware offers a discount of two percent on their commercial accounts if payment is received within 10 days. Otherwise, payment is due within 30 days. This credit offering is referred to as the: a. terms of sale. b. credit analysis. c. collection policy. d. payables policy.

Answer 1

Answer:

The correct answer is A that is terms of sale

Explanation:

Term of Sales is the term which is described as the to the agreement or the contract among the buyer and the seller of goods and services. It involves the  conditions on both the parties agreed like the delivery, payment terms, price, quality, warranty, quantity and other special conditions.

So, in this case, the hardware offers the discount if payment is received within the time period of 10 days. And if the payment is not received within the period of 10 days then will be due in 30 days. Therefore, it is called as the terms of the sale.