Scarlett Linens Offers Credit with Terms of 3/15, Net 30

Multiple Choice

Scarlett Linens offers credit with terms of 3/15, net 30 to its customers. These terms indicate that Scarlett allows its customers to take a:

A) 15 percent discount from the total invoice price if payment is made on or before Day 30 of the billing cycle; after that, only a 3 percent discount is available.
B) 30 percent discount from the total invoice price if payment is made on or before Day 15 of the billing cycle; after that, only a 3 percent discount is available.
C) 3 percent discount from the total invoice price if payment is made on or before Day 15 of the billing cycle; otherwise, the entire bill is due by Day 30.
D) 15 percent discount from the total invoice price if payment is made on or before Day 3 of the billing cycle; otherwise, the entire bill is due by Day 30.
E) 30 percent discount from the total invoice price if payment is made on or before Day 3 of the billing cycle; otherwise, the entire bill is due by Day 15.