Jiminez Skill Shops Limited (JSSL) acquired inventory of $5,000 with terms of 1 5 n30 JSSL maintains access to a line of credit at a bank at 12 interest Required Should JSSL use its line of credit to take the discount or not ...

Jiminez Skill Shops Limited (JSSL) acquired inventory of $5,000 with terms of 1/5 n30. JSSL maintains access

Question:

Jiminez Skill Shops Limited (JSSL) acquired inventory of $5,000 with terms of 1/5 n30. JSSL maintains access to a at a bank at 12% interest.
Required:
Should JSSL use its to take the discount or not?
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...