Get correct answer accounting questions A manufacturer offers credit terms of 2/10, net 30,but a business consistently pays after 45 days. Use a365-day year. Calculate the effective cost of tradecredit.

Step 1: Definition of Effective Cost of Trade CreditThe effective cost of trade credit is the…

Answered: A manufacturer offers credit terms of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10QTD

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A manufacturer offers credit terms of 2/10, net 30, but a business consistently pays after 45 days. Use a 365-day year. Calculate the effective cost of trade credit.