Question: INFORMATION Lambda Distributors (LD) is a regular supplier of branded beauty products to Edgemead Stores (ES) subject to normal credit terms of 30 days. Today,

 INFORMATION Lambda Distributors (LD) is a regular supplier of branded beauty

INFORMATION Lambda Distributors (LD) is a regular supplier of branded beauty products to Edgemead Stores (ES) subject to normal credit terms of 30 days. Today, LD supplied R200 000 worth of merchandise to ES on credit. The manager of LD is prepared to shave R3 000 off the receivable on condition that ES settles the account within 10 days. The cost of the overdraft facility available to ES is 30%. REQUIRED: Calculate the cost to Edgemead Stores of not accepting the discount and state whether Edgemead Stores should accept the discount offered

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