Investor Glossary-1%/10 net 30Investor Glossary-1%/10 net 30Investor Glossary-1%/10 net 30Investor Glossary-1%/10 net 30Insightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

1%/10 Net 30

The HTML to link to this page
 

1%/10 net 30 represent payment terms for a commercial transaction. The 1% in 1%/10 net 30 is the discount percentage; the 10 in 1%/10 net 30 is the days allowed to get the discount; and the 30 in 1%/10 net 30 is the days in which the bill must be paid. Thus 1%/10 net 30 means "the buyer gets a 1% discount if he pays within 10 days; otherwise, the full amount is due in 30 days." By offering the 1% discount in terms of 1%/10 net 30, creditors induce customers to pay their bills quickly. Creditors may offer larger discounts: instead of 1%/10 net 30, terms of 2%/10 net 30 give customers a 2% discount for paying bills in 10 days. Depending on accounting treatment, for the seller, terms of 1%/10 net 30 may require a contra account for sales discounts that decreases sales. Conversely, for the buyer, terms of 1%/10 net 30 may require a contra account for purchase discounts that, ultimately, reduces cost of goods sold. For publicly traded companies, however, the sales and purchases discounts implied by terms of 1%/10 net 30 are usually aggregated with other accounts and not listed separately on financial statements.



Rate this 1%/10 net 30 definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: dividends payable, limit order, phantom income, deferred tax, wholly-owned subsidiary, cancelled check, LIBOR, 1031 exchange, average price per share, per diem, APR, covered put, irrevocable trust, inflation, labor relations, current ratio, required rate of return, ex-dividend date, stock split, retained earnings, risk management, minority interest, open position, liquidity ratio, command economy, class C shares, ex-dividend, 144a, debt service coverage, diluted share, option premium, balance sheet, margin rate, real GDP, Key Rate Duration, reverse mortgage, FTSE, deferred revenue, FICO score, annual return, stock market close, 401a, EBITDA, implied volatility, 1035 exchange, Zero Cost Collar, quality assurance, VIX, in escrow


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use