Comfort Ltd

Multiple Choice

Comfort Ltd. offers customers payment terms on invoices of 2/10, n30. A customer is unable to pay the invoice when received but will have the funds by month end. The customer has the option of borrowing on its 12% line of credit and paying off the invoice or waiting until the end of the 30 days. What should the customer do?

A) Borrow the funds on the tenth day and pay the invoice.
B) Borrow the funds upon receipt of the invoice and pay immediately.
C) Borrow the funds upon receipt and pay in 30 days.
D) Wait until the end of the month and pay from the customer's own cash.
E) Wait until month end to borrow the funds and pay the invoice.