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You place an order for 300 units of inventory at a unit price of $135. The supplier offers terms of 3/10, net 60. a-1. How long do you have to pay before the account is overdue? a-2. If you take the full period, how much should you remit?

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abiolataiwo2015

Answer:

a1. 60 days

a2.Remittance = $40,500

b1- 1 % discount offered

b-2, 10days

b-3 =$40,095 ± 0.1

c-1 Implicit interest $405 ± 0.1%

c-2 Days' credit days=50 days

Explanation:

a1. 60 days

a2.0rder for 300 units of inventory at a unit price of $135

Remittance = 300($135)

Remittance = $40,500

b- 1 % discount offered

b-2, 10days

b-3 Remittance (1- 0.01) $40,500

(0.99)$40,500

Remittance =$40,095 ± 0.1%

c-1 Implicit interest $40,500- $40,095

Implicit interest $405 ± 0.1%

c-2

Days' credit days 60-10

Days' credit days=50 days

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