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3. A firm purchases merchandise on terms of 2/15, net 40 days. It does not take discounts, and it typically pays on time, 40 days

3. A firm purchases merchandise on terms of 2/15, net 40 days. It does not take discounts, and it typically pays on time, 40 days after the invoice date. Net purchases amount to 784,000 per year. Assume a 365-day year, and note that purchases are net of discounts. What are the amounts of Free trade credit and Costly trade credit the firm receives during the year?

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