 Hello in this lecture we will define credit period according to fundamental accounting principles while 22nd edition the definition of credit period is time period that can pass before a customer payment is due. So we're talking about the terms that would then happen at the point of sale if we made a sale on account meaning we have accounts receivable we need to know when that receivable is going to be received that would be the credit period how long we have between the sale and the point in time that we want to receive payment from the customer for example if we made the sale here to the customer we may have terms that might be more complicated such as 2 slash 10 and slash 30 which means we want a we'll give a 2 discount if paid within 10 days otherwise we want it paid within 30 days the term might be just we want to get paid within 30 days it could be we want to get paid within 15 days 30 often being somewhat of more standard terms that are often used the period between the point in time of the sale and the 30-day credit period