FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date. Its purchases total P2,160,000 per year. Assuming 360 days a year, the amount of “non-free” trade credit used by the firm on the average each year is?

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A: FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date.…

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