The Cake Shop bought baking ingredients on credit costing $12,500. The credit terms are 2.5/5, net 30.

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The Cake Shop bought baking ingredients on credit costing $12,500. The credit terms are 2.5/5, net 30. If The Cake Shop pays the invoice within five days after the purchase,

How much should it pay?

What is the approximate cost of giving up the discount when it pays 30 days after the invoice date?

Related Book For answer-question

Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

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Posted Date: May 09, 2023 08:36 AM

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The Cake Shop bought baking ingredients on credit costing $12,500. The credit terms are 2.5/5, net 30.

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If The Cake Shop pays the invoice within five days after the purchase it can take a 25 discount on ... View the full answer

Auditing and Assurance Services

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