Ingram Office Supplies,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 $800,000 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. )
A) $91,288
B) $76,712
C) $83,616
D) $79,781
E) $93,589
Correct Answer:
Verified
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