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Don Baker, Inc., is a precision tool manufacturer. The company recently began selling its tools to customers outside the United States. Its chief financial officer has decided to grant its foreign customers (if they are billed in a non-USD currency) the following trade credit: they can take 2% off the invoice if they settle their account within 35 days. If not, the whole invoice amount is due in 70 days.
Problem 1: Which of the following is consistent with this trade credit? Option 1: 35/70, net 2 Option 2: 2/35, net 70 Option 3: 2/70, net 70
Option 4: 2/70, net 35
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