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Ingram Office Supplies Inc buys on terms of 215 net 50 days It does not take discounts and it typically pays on time 50 days after the invoice date Net purchases amount to $800000 per year

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. $79,781

 
 

b. $83,616

 
 

c. $91,288

 
 

d. $93,589

 
 

e. $76,712

 

Apr 03 2020 View more View Less

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