Problem:
Optical Supply Company offers credit terms of 2/10, net 60. If Optical Supply is considering a change in its credit terms to one of those indicated, explain whether the change should increase or decrease sales. (a) 2/10, net 30, (b) net 60, (c) 3/15, net 60, (d) 2/10, net 30, 30 extra.
Question: If the (A) terms were offered to a customer as opposed to their current terms (2/10 net 60), what might this suggest regarding the indebtedness of the customer? What may be some other factors for the supplier to change the terms?