Pets Store Inc. sells on terms of 1/20, net 40. What is the effective annual cost of trade credit under these terms? Use a 365 day year. Round the answer to two decimal places in percentage form.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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Pets Store Inc. sells on terms of 1/20, net
40. What is the effective annual cost of
trade credit under these terms? Use a 365
day year. Round the answer to two decimal
places in percentage form.
Transcribed Image Text:Pets Store Inc. sells on terms of 1/20, net 40. What is the effective annual cost of trade credit under these terms? Use a 365 day year. Round the answer to two decimal places in percentage form.
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