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Accounts Receivable. When companies sell to other companies, they offer credit terms, which are called sales on credit (or credit sales or sales on account). An example of a common credit term is 2/10, net 30. From the seller\'s standpoint, offering the discount is often warranted since it receives cash more quickly and can invest it to yield a return greater than the discount it is offering. The buyer often wishes to avail itself of the discount even if it has to borrow money to do so. .

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