Fairweather Corporation purchases merchandise on terms of 2/15, net 40, and its gross purchases (i.e., purchases before taking off the discount) are $800,000 per year. What is the maximum dollar amount of costly trade credit the firm could get, assuming it abides by the supplier's credit terms?

Answer rating: 100% (QA)

Net purchases Gross 1 Disc 784000 Net per da... View the full answer