2/10 N/60 is a formal payment term used in business transactions which outlines the terms of payment between two parties. In this particular scenario, it implies that a buyer can receive a 2% discount on their purchase if they settle the amount within 10 days of the invoice date. However, if they fail to do so, the full amount will have to be settled within 60 days. This payment term encourages buyers to make payments faster and helps sellers manage cash flow better.