Company X sells on a 2 20, net 66, basis Customer Y buys goods with an invoice of $1,200 a How much can Y deduct from the bill if it pays on day 20 (Round your answer to 1 decimal place ) Discount $ b How many extra days of credit can Y receive if it passes up the cash discount (Round your answer to the nearest whole ) Extra days of credit c What is the effective annual rate of interest if Y pays on the due date rather than day 20 (Round your answer to 2 decimal places ) Effective annual rate of interest References

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Company X sells on a 2 20, net 66, basis Customer Y buys goods with an invoice of $1,200  a  How much can Y deduct from the bill if it pays on day 20  (Round your answer to 1 decimal place ) Discount $ b  How many extra days of credit can Y receive if it passes up the cash discount  (Round your answer to the nearest whole ) Extra days of credit c  What is the effective annual rate of interest if Y pays on the due date rather than day 20  (Round your answer to 2 decimal places ) Effective annual rate of interest References

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Company X sells on a 2/20, net 66, basis Customer Y buys goods with an invoice of

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Auditing and Assurance Services An Applied Approach

Company X sells on a 2/20, net 66, basis Customer Y buys goods with an invoice of

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Auditing and Assurance Services An Applied Approach

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