Question
Bercraft has an average accounts payable balance of $280,000. Its average annual cost of goods sold is $4780,000, and it receives terms of 1/20, net
Bercraft has an average accounts payable balance of $280,000. Its average annual cost of goods sold is $4780,000, and it receives terms of 1/20, net 40, from its suppliers. the firm managing its accounts payable well?
A: yes, since it, on average, choose nor take the discount, but pays when payment is due
B: yes, since it, on average, takes the discount and pays at the end of the discount period
C: Yes, since it, on average. stretches payment beyond the use payment date.
D: No, since it, on average.does not take advantage of the discount period and pays well before payment is due.
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