Goods are generally sold on credit. The sellers usually allow the deduction of a certain percentage of the total if the bills are paid before they are due. Thus, if the whole amount is due in sixty days, the wholesaler may allow a certain percentage off from the total if it is paid within ten days. Suppose the percentage that would be allowed off is three. Then the terms of discount might appear on the bill as 3/10 - net 60, meaning that a discount of 3% will be allowed if the bill is paid in ten days.