Firms usually offer their customers some form of trade credit. This allowance comes with certain terms...
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Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Tasty Tuna Corporation buys on terms of 1.5/20, net 30 from its chief supplier. If Tasty Tuna receives an invoice for $1,545.78, what would be the true price of this invoice? $2,131.63 O $1,218.07 O $1,065.81 O $1,522.59 The nominal annual cost of the trade credit extended by the supplier is assuming a 365-day year. Suppose Tasty Tuna does not take advantage of the discount and then chooses to pay its supplier late-so that on average. On average, Tasty Tuna will pay its supplier on the 35th day after the sale. As a result, Tasty Tuna can decrease its nominal cost of trade credit by by paying late. Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Tasty Tuna Corporation buys on terms of 1.5/20, net 30 from its chief supplier. If Tasty Tuna receives an invoice for $1,545.78, what would be the true price of this invoice? $2,131.63 O $1,218.07 O $1,065.81 O $1,522.59 The nominal annual cost of the trade credit extended by the supplier is assuming a 365-day year. Suppose Tasty Tuna does not take advantage of the discount and then chooses to pay its supplier late-so that on average. On average, Tasty Tuna will pay its supplier on the 35th day after the sale. As a result, Tasty Tuna can decrease its nominal cost of trade credit by by paying late.
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Tasty Tuna is offered terms of 1520 net 30 This means they get a 15 discount if they pay within ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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