Answered: P159,621 each year. The firm's costly…

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Accounting

P159,621 each year. The firm's costly trade credit is closest to (Use 365 days in a year)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ABC Co. buys on credit terms of 2/10,
n/45. This policy costs the firm
P159,621 each year. The firm's costly
trade credit is closest to (Use 365
days in a year)
P964,286
P750,000
P625,000
O P214,286

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