Favorites, Inc., an eclectic book and music store near a large college campus, is a reseller. The store buys books almost every day. Deliveries are a continual part of the day$-$to$-$day operation of the firm. The

transportation company that delivers to Favorites provides this service on trade credit terms of $\frac{3}{5},$ net $30.$ This means the firm

Multiple Choice

is offered a $3$ percent discount if it pays during the first $5$ days. The entire bill is due in $30$ days.

will receive $10$ percent discount on the first $5$ percent of the order. The entire bill is due in $30$ days.

will pay $30$ percent of the charge on delivery and the rest within $5$ days.

will receive a $5$ percent discount if they pay within the first three days, but the entire bill is due in $30$ days.