The 2/10 N/30 journal entry is a popular payment term used in accounting that seeks to balance the seller’s need for immediate payment and the buyer’s need for extended credit. It allows a business to extend net-30 days of credit to its customers, while still receiving payment within 10 days. This term is ideal for businesses that need prompt payments but also need to extend terms to their customers. By making it easier for them to pay, businesses can get paid faster while still offering their customers time to pay. With this arrangement, everyone wins!