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x D Chapter 1-An a Secure https/ eflaunchjsp?rcourse assessment id 499551 18ccourse id 445464 1änew attempt-18 conter Have no effect on net income QUESTION 13 The credit terms 3/10, 60 are offered to a customes on an invoice. These terms indicate that a 3% discount can be taken if he invoice is paid within 60 days ofthe sale @ 10% discount canbetakeritteinvoice is paid within 3 days of he sale 10% discount can be taken if invoice is paid within 60 days 3%discount can be taken itthe invoice is paid within 10 days ofthe sale QUESTION 14 On May 28th 2015. Shaffer Co purchased inventory for $1,000 cash with credi torms of 2/10, 50 If Shaffer does not pay within the discount period, what is the eective annual Interest rate being charged by the supplier 182% ?209% 146% 210% QUESTION 15 Cick Save and Subt to save and submit. Ck Save All Ansers to ave all anuers Save All AnsExplanation / Answer
Question - 13
The Answer is “3% Discount can be taken if the invoice is paid within 10 days of the sale”
The credit term 3/10, n/60 indicate that customer can take 3% discount on the payment of the invoice amount if the payments are paid within the 10 days of the date of invoice. The term n/60 indicates that the normal credit period for the customer is 60 days
Question - 14
The Answer is “18.2%”
Annual Interest being charged by the supplier
= [365 Days / (Normal Credit Period – Discount period)] * Discount Rate
= [365 Days / (50 Days – 10 Days)] * 0.02
= 18.2%
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