Arnold Inc.purchases merchandise on terms of 2/10 net 30, and it always pays on the 30th day.The CFO calculates that the average amount of costly trade credit carried is $375, 000.What is the firm's average accounts payable balance? (Assume a 365-day year.)
A) $458, 160
B) $482, 273
C) $507, 656
D) $534, 375
E) $562, 500
Correct Answer:
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