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Description: If a firm's supplier has a credit policy of 1/10/45, what is the nominal cost of trade credit? a.1% b.99% c.10.83% d.11.05% e.None of the above

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If a firm's supplier has a credit policy of 1/10/45, what is the nominal cost of trade credit? a. 1% b. 99% c. 10.83% d. 11.05% e. None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 3MC: Which of the following numbers represents the discount percentage applied if a customer pays within...

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If a firm's supplier has a credit policy of 1/10/45, what is the nominal cost of trade credit?

a.

1%

b.

99%

c.

10.83%

d.

11.05%

e.

None of the above

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Hello Could you please help me with this?
Briefly discuss the following: 1. When does commercial credit occurs? 2. What attributes does commercial credit have? 3. What are the elements that influence the credit period? 4. What are the advantages of trade discounts? 5. When can we use anticipation rates?
How does the cost of costly trade credit generally compare withthe cost of short-term bank loans?
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Explain the trade credit facility provided by some companies to their customers that allow them to manage their day-to-day liquidity situation and calculate the opportunity cost of an invoice that specifies the following conditions, as shown below (a. – c.):a) conditions: 1.25/10, n/30.b) conditions: 1.25/10, n/60.c) conditions: 1.5/10, n/60.