If a firm grants credit with terms of 3/10, net 30, the customer:
must pay a penalty for 10% when payment is made in more than 3 days after the sale.
must pay a penalty of 3% when payment is made in more than 10 days after the sale.
receives a discount of 10% when payment is made in less than 3 days after the sale.
receives a discount of 3% when payment is made in less than 10 days after the sale.