Answered: A wholesaler purchases goods with…

A wholesaler purchases goods with credit terms of 2/10, net 30, but usually pays the supplier after 40 days. Use a 360-day year. a) What is the wholesaler's effective cost of trade credit?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 4P: A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60...

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Financial accounting question

A wholesaler purchases goods with credit terms of 2/10, net 30, but
usually pays the supplier after 40 days. Use a 360-day year. a) What is
the wholesaler's effective cost of trade credit?

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What is the effective cost of trade credit under the credit terms of 2/15, net 40? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate Answer this question