company sells item on account with credit terms of 2/10,n/20. What is the meaning of these terms? An additional amount equal to 2 percent of the invoice price must be paid if payment is not received within 10 days; the account is overdue after 20 days. A 10 percent cash discount may be taken if payment is made immediately; a 2 percent discount if paid within 20 days. A 10 percent cash discount may be taken if payment is made within 2 days of the invoice date; otherwise the full amount is due in 20 days. A 2 percent cash discount may be taken if payment is made within 10 days of the invoice date; otherwise the full amount is due within 20 days