4. TRIPLE K Clothing has purchased raw materials amounting to P800,000 from its major supplier on...

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4. TRIPLE K Clothing has purchased raw materials amounting to P800,000 from its major supplier on February 14, 2019. The credit terms given to TRIPLE K were: 3/20, net 60. TRIPLE L operates 360 days a year. Three days after the purchase, the supplier is offering TRIPLE K new credit terms of 2/10, net 30 for the purchase transaction. The supplier is giving TRIPLE K the choice between the old credit terms of 3/20, net 60, and the new credit term of 2/10, net 30. Compute the following: a. b. C. Cost of supplier's trade credit of the two terms. Effective cost of credit of the credit terms. Which credit terms should be chosen by TRIPLE K Clothing assuming cash discount will not be taken, or payment will be made on the last day of the credit term? Discuss your answer briefly. 4. TRIPLE K Clothing has purchased raw materials amounting to P800,000 from its major supplier on February 14, 2019. The credit terms given to TRIPLE K were: 3/20, net 60. TRIPLE L operates 360 days a year. Three days after the purchase, the supplier is offering TRIPLE K new credit terms of 2/10, net 30 for the purchase transaction. The supplier is giving TRIPLE K the choice between the old credit terms of 3/20, net 60, and the new credit term of 2/10, net 30. Compute the following: a. b. C. Cost of supplier's trade credit of the two terms. Effective cost of credit of the credit terms. Which credit terms should be chosen by TRIPLE K Clothing assuming cash discount will not be taken, or payment will be made on the last day of the credit term? Discuss your answer briefly.

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To solve this problem lets break it down step by step a Cost of suppliers trade credit of the two te... View the full answer