The cost of discounts missed on credit terms 2/10, n/50 is (use 360 days)
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- A credit term of 3/10 net 60 means Discount of 0.3% if paid immediately else payment is effected after 60 days Discount of 10% if paid within 3 days else payment is effected after 60 days Discount of 3% if paid within 10 days else payment is effected after 60 days 10% of the dues paid within 3 days and balance in 60 daysIf the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period? Assume a discount percentage of 1% for payments received on or before 20 days. Select one: a. 20 days b. 30 days c. 50 days d. 70 daysIn credit terms of 3/15, n/45, the "3" represents the Oa. number of days in the discount period Ob. number of days when the entire amount is due Oc. percent of the cash discount )d. full amount of the invoice
- Cost of Trade Credit What are the nominal and effective costs of trade credit under the credit terms of 1/10, net 40? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit: %(14) Credit earned on a partial payment of $ 600 at a discount rate of 5% is, A. $26.32 B. $ 27.35 32.26 E. NOA C. $ 28.23 D.19
- Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays its account on the 50th day, the effective borrowing cost of skipping the discount on day 10 is closest to: a. 15.0% b. 14.9 % c. 20.2 %What are the nominal and effective costs of trade credit under the credit terms of 4/10, net 40? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit: %Sales discounts with terms 2/10, n/30 meana. 10 percent discount for payment received within30 days of the date of sale.b. 2 percent discount for payment received within 10 daysor the full amount (less returns) is due within 30 days.c. Two-tenths of a percent discount for payment receivedwithin 30 days.d. None of the above
- hat are the nominal and effective costs of trade credit under the credit terms of 2/20, net 40? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit:5Calculate the percentage of AR over 90 days: Total accounts receivable over 90 days: $18,105.50 A/R : $67,901 Allowance: ($4,521) 25% 33% 65% 85%
