Zips Corp purchased $10,000 of inventory on October 1 of this year with terms 2/10 n/30. Which of the following is true? (Rc whole dollars, if necessary and assume there are 365 days in the current year). O If Zips does not have the cash to pay by October 10, it will lose the discount. O If Zips Corp can borrow the cash from the bank at 5% interest, Zips will save $200. O If Zips Corp can borrow the cash from the bank at 5% interest, it will save $173. O If Zips Corp can borrow the money from the bank, it will incur $500 of interest expense.

Zips Corp purchased $10,000 of inventory on October 1 of this year with terms 2/10 n/30. Which of the following is true? (Rc whole dollars, if necessary and assume there are 365 days in the current year). O If Zips does not have the cash to pay by October 10, it will lose the discount. O If Zips Corp can borrow the cash from the bank at 5% interest, Zips will save $200. O If Zips Corp can borrow the cash from the bank at 5% interest, it will save $173. O If Zips Corp can borrow the money from the bank, it will incur $500 of interest expense.

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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