Buskirk Construction buys on terms of 2/15,net 60 days.It does not take discounts,and it typically pays on time,60 days after the invoice date.Net purchases amount to $600,000 per year.On average,how much "free" trade credit does the firm receive during the year? (Assume a 365-day year,and note that purchases are net of discounts. )
A) $23,178
B) $26,877
C) $20,466
D) $24,658
E) $18,986

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The Answer of Buskirk Construction buys on terms of 2/15,net 60 days.It does not take discounts,and it typically pays on time,60 days after the invoice date.Net purchases amount to $600,000 per year.On average,how much "free" trade credit does the firm receive during the year? (Assume a 365-day year,and note that purchases are net of discounts. )
A) $23,178
B) $26,877
C) $20,466
D) $24,658
E) $18,986

Buskirk Construction Buys on Terms of 2/15,net 60 Days