If a firm gives up the cash discount on goods purchased on credit, the firm should pay the bill ________.

Question

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If a firm gives up the cash discount on goods purchased on credit, the firm should pay the bill on the last day of the credit period. This means that the firm must pay the full amount of the bill within the agreed upon credit period, which is usually specified in the credit terms. Choosing to pay the bill after the credit period has ended could result in additional fees or penalties, and paying on the last day of the discount date would not apply if the cash discount has been forfeited.

If a Firm Gives Up the Cash Discount on Goods