Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoice? (Assume a 365-day year.) Show your complete solution.
Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoice? (Assume a 365-day year.) Show your complete solution.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 10QTD
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Your company has been offered credit terms on its purchases of 4/30, net 90
days. What will be the nominal annual cost of trade credit if your company
pays on the 35th day after receiving the invoice? (Assume a 365-day year.) Show your complete solution.
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