In the context of credit terms expressed as 100/300/50, the '100' refers to:

• A. The number of days in the discount period
• B. The total invoice amount
• C. The cash discount percentage offered to the buyer
• D. The number of days until the full payment is due

Answer: (A)

Verified step by step guidance

1. Understand the format of credit terms: Credit terms are typically expressed in a format such as 'X/Y/Z', where X, Y, and Z represent specific details about payment conditions.
2. Interpret the first number (100): In this case, the '100' refers to the cash discount percentage offered to the buyer. This indicates the percentage of discount available if payment is made within the specified discount period.
3. Interpret the second number (300): The '300' refers to the number of days in the discount period. This is the time frame within which the buyer can take advantage of the discount.
4. Interpret the third number (50): The '50' refers to the number of days until the full payment is due. This is the maximum time allowed for payment without incurring penalties.
5. Review the options provided: Based on the interpretation of the credit terms, identify which option correctly matches the meaning of '100' in the context of the problem.