Which of the following terms of trade credit is the more expensive? a. A 3 percent cash discount if paid on the 15th day with bill due on the 45th day (3/15, net 45) b. A 2 percent cash discount if paid on the 10th day with the bill due on the 30th day (2/10, net 30)

Q: The invoice date for a bill is April 14 with the terms 2/15 ROG. If the goods were received on June…

A: The Receipt-of-goods (ROG) is the method of payment, wherein the date of commencement is the day on…

Q: A $10,000 credit supply has the following terms: trade terms are 5/5 net 50, interest rate 8%. What…

A: If the amount is paid within 5 days of invoice then the 5% discount will be allowed on net amount…

Q: Complete the following (If more than one discount, assume date of last discount): (Use Table 7.1)…

A: Discount Period - Every company encourages Sales and payment from the customer issue some discount…

Q: If a firm is given a trade credit terms of 2/15, net 30,  then the cost to the firm failing to take…

A: Trade credit terms of 2/15, net 30 means the firm gets a 2% discount if it pays within 15 days.…

Q: 17-9. (Trade credit discounts) Determine the effective annualized cost of forgoing the trade credit…

A: The formula for calculating the effective annualized cost of foregoing the trade credit discount is

Q: Complete the following (If more than one discount, assume date of last discount) Note: Assuming…

A: Accounting of Sales Discount -The financial documentation of a sales price reduction resulting from…

Q: Complete the following (If more than one discount, assume date of last discount): (Use Table 7.1)…

A: The time between the final day that the discount terms are still in effect and the date when the…

Q: rade credit terms of 2/10, net 90 are available. Calculate the cost of trade credit when payment is…

A: The cost of trade credit is the cost that has been faced by the supplier to issue the goods on…

Q: If a firm is given a trade credit terms of 2/15, net 30, then the cost to the firm failing to take…

A: 1. 2/15, net 30 means if payment is made within 15 days , it will get 2% discount.  Otherwise the…

Q: On a 365-day basis, using a trade credit terms of 2/10, net 30, and payment is made on the twentieth…

A: In case of trade credit, 2% discount is being given if payment is made till 10th day.

Q: Complete the following: Invoice Mar. 27 Date goods are received Terms 3/10 EOM Last day of discount…

A: If the invoice date is March 27andthe goods are received on that day, the terms are 3/10.This means…

Q: Cost of Trade Credit Calculate the nominal annual cost of trade credit under each of the following…

A: The nominal rate of credit = Discount rate1-discount rate×365credit period-discount perioid   1. The…

Q: What do the credit terms, 2/15, n/30 mean? Multiple Choice A two percent discount can be deducted if…

A: The purchase invoice contains the various terms related to the payment to the supplier. It tells…

Q: A supermarket charges 2.75% per month on credit purchases. What is the equivalent nominal annual…

A: Nominal rate is interest rate without the impact of compounding interest rate and it is like simple…

Q: On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and…

A: On making payment till 10th day there is 2% discount. If payment is made between 11th till 30th day,…

Q: Calculate the trade discount (in $). Round your answer to the nearest cent.

A: Information Provided: List price = $365 Trade discount rate = 7%

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Annual nominal cost of trade credit = Discount %/(100-Discount %) x (360/Allowed payment days –…

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Given:

Q: Question  The average collection period is the average amount of time that elapses from a credit…

A: Average Collection Period Average collection period is time allowed by the company to its debtors…

Q: 10. You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last…

A: Since you have posted a question with multiple questions, we will solve the first one for you. If…

Q: Catz Corp. sells its goods with terms of 3/10 EOM, net 45. What is the implicit cost of the trade…

A: Solution: Let's gross price = 100 Net price if paid in 10 days = 100 - 100*3% = 97 Credit period…

Q: The cost of discounts missed on credit terms 2/10, n/50 is (use 360 days)

A: Credit terms Credit terms are those requirements that are mentioned on an invoice that includes the…

Q: If the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period?…

A: Trade credit is a form of financing provided by suppliers to their customers. It allows customers to…

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Business day to day working is also financed by means of trade credit. trade credit is the credit…

Q: Based on the following information, how much is the amount that would be paid on May 30? Invoice…

A: A trade discount is given at the time of purchase to the retailer or reseller by the manufacturer on…

Q: elect the correct answer and explain What is the discount to a promissory note with a face value of…

A: In this we have calculate the discount on note using simple interest rate given.

Q: The enterprise has discounted the bills receivable with a nominal value of 2750 with an internal…

A: Bill receivable is the bill that enforces that the customer has not paid money yet in exchange for…

Q: cent as needed

A: A trade discount is a percentage reduction in a manufacturer's asking price for merchandisers.

Q: Trade credit terms of 2/10, net 90 are available. Calculate the cost of trade credit when payment is…

A: Trade credit is an important source of liquidity and financing for any company. The company needs to…

Q: PLEASE SHOW ALL WORK For terms of 8/10, n/60 determine the annual rate you, in effect, pay the…

A: Credit terms = 8/10 , n/60 means if payment is made within 10 days then supplier will offer 8%…

Q: Which of the 3-5 year notes might be considered cheap?   Group of answer choices O. HON 3.25…

A: The yield is the annual interest payment that a bondholder will receive, expressed as a percentage…

Q: On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net…

A: If the payment is done in 10th day, the discount is given for 2 else full payment is required if…

Q: A credit term of 3/10 net 60 means Discount of 0.3% if paid immediately else payment is effected…

A: Introduction:- Credit terms is an agreement between the buyer and seller pertaining to the timings…

Q: ys vs

A: Formula to calculate Effective annual rate: Discount rate/(1 - Discount rate)*(360/(Full allowed…

Q: alculate the cost of trade credit when payment is made on the net due date using the APR

A: Cost of Trade Credit  is a method of interest rate calculation based on accounts payable. It is…

Q: Need help on practice qu

A: Credit card company often provide the credit facilities at a lower interest rate to those the credit…

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Cost of Trade Credit: The cost of trade credit is calculated using the following formula: Cost of…

Q: %

A: rnom = [Discount % / 1 - Discount % ]  * [ 365 days/ Days credit is outstanding - Discount Period]…

Q: From the payment terms, 2/15, n/30, the discount period is ___________. a. 17 days b. 15 days c. 30…

A: Payment terms defines that in how many days payment should be made. It will also define that how…

Q: Credit earned on a partial payment of $ 600 at a discount rate of 5% is, A. $26.32 B. $ 27.35 32.26…

A: Payment = p = $600 Discount rate = r = 5% Let time = t = 1

Q: The credit term 3/10 net 30 signifies: a. Credit period 30 days, cash discount 3 percent and cash…

A: Credit term 3/10 net 30 signifies that the customer will get 3% discount if the customer pays the…

Q: The collection of a 1200 account after the 2 percent discount period will result in a

A: Lets understand the treatment of collection of 1,200 account after the 2 percent discount period.…

Q: What amount will reduce the amount due on an invoice of $2555 73 by $1106 05 if the terms of the…

A: A discount of rate 1% will be given when the payment is made within the discount period. In the…

Q: (Trade credit discounts) Determine the effective annualized cost of forgoing the trade credit…

A: Solution (a):2/6 net 30 means that take 2% discount if paid in 6 days, otherwise pay in 30…