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10. Cost of trade credit Aa Aa Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit,
10. Cost of trade credit Aa Aa Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Free Spirit Industries Inc. buys on terms of 2.5/20, net 30 from its chief supplier. If Free Spirit receives an invoice for $856.75, what would be the true price of this invoice? O $1,169.46 O $835.33 O $584.7.3 O $626.50
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