Concept explainers
a)
To determine: The payable amount
Introduction:
Payable period: Accounts payable period is also termed as day’s payable period, which is the period the company takes to pay its invoice from the creditors. The formula to calculate accounts payable period is as follows:
b)
To determine: The payable amount when payable period is 90 days
Introduction:
Payable period: Accounts payable period is also termed as day’s payable period, which is the period the company takes to pay its invoice from the creditors. The formula to calculate accounts payable period is as follows:
c)
To determine: The payable amount when payable period is 60 days.
Introduction:
Payable period: Accounts payable period is also termed as day’s payable period, which is the period the company takes to pay its invoice from the creditors. The formula to calculate accounts payable period is as follows:
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