Question
307: Bob purchased some goods from a supplier on October 1, Year 1. The invoice amount of these goods were $18,000. The sales terms were
307: Bob purchased some goods from a supplier on October 1, Year 1. The invoice amount of these goods were $18,000. The sales terms were FOB shipping point and the goods were shipped on October 1, Year 1. The seller offered these discount terms to Bob: '3/20, net 60'.
If Bob opts to pay on the 20th day, what is the annual rate at which Bob is saving as a result of paying earlier than otherwise needed?
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Petroleum Accounting: Principles, Procedures; And Issues
Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou
8th Edition
0940966328, 978-0940966321
