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horeline Supply offers their customers trade credit with terms 2/15 net 30. This implies that Multiple Choice paying within 30 days will let a customer deduct 15% off the invoice price. Shoreline's customers have very little incentive to pay within the discount period. most customers will pay their bill within 2 days in order to take the maximum discount. the annual financing cost of failing to pay within 15 days is about 48%.

Respuesta :

The most suitable option is that Company S's customers have very little incentive to pay within the discount period, that is, a 2% of discount is allowed to customers of Company S on paying within 15 days of the discount period.

What is a cash discount?

A cash discount is an incentive or rebate allowed to the customers on a receivable amount to be paid within a specified period. It is usually allowed to get prompt payments from the customers.

The credit term provided by Company S is 2/15, net 30 which means a 2% discount is provided to customers if they make the payment within 15 days, and after 15 days the discount period expires and they have to pay the full amount within the period 30 days.

Therefore, the customers of Company S have a very minimal amount of incentive on paying within the discount period.

Learn more about the cash discount in the below-mentioned link:

https://brainly.com/question/15969033

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