A company which foregoes the discount when credit terms are 4/15 net 70 is essentially borrowing money from his supplier for an additional [blank].

Question

Quizplus · Accepted Answer

The credit terms of "4/15 net 70" means that the company can receive a 4% discount if they pay within 15 days, but if they don't take the discount, the full payment is due in 70 days. Therefore, if the company foregoes the discount, they are essentially borrowing money from their supplier for an additional 55 days (70 days - 15 days).

A Company Which Foregoes the Discount When Credit Terms Are