Taylor Textbooks Inc.buys on terms of 2/15, net 50 days.It does not take discounts, and it typically pays on time, 50 days after the invoice date.Net purchases amount to $450, 000 per year.On average, what is the dollar amount of costly trade credit (total credit - free credit)the firm receives during the year? (Assume a 365-day year, and note that purchases are net of discounts.)

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Purchases/day = $450, 000/365 = $1, 233
Avg.trade credit = Average A/P = Days to payment ×Net purchases/day = $61, 644
Free trade credit = Discount days ×Purchases/day = $18, 493
Costly trade credit = Total credit - Free credit = $43, 151
Alternatively, Costly TC = (Days to pmtrue.- Disc.days)×(Purchases/day)= $43, 151