If a firm grants credit with terms of 2/10, net 30, the customer:

-must pay a penalty of 2% when payment is made in more than 10 days after the sale.

-must pay a penalty for 10% when payment is made in more than 2 days after the sale.

-receives a discount of 2% when payment is made in less than 10 days after the sale.

-receives a discount of 10% when payment is made in less than 2 days after the sale.