Cost of trade credit / period cost fo trade credit

9:04 PM PS7-Cynthia Chavez.xlsx KAME PROB LEM SET7 Chapter 15-Revenue Cyyle and Current Accounts Management Assigned Problem 2 Suppose one of the suppliers to Seattle Health Svstem offers terms of 3/20, net 60 a. When does the system have to pay its bills from this supplier? b. What is the approximate percentage cost of the costly trade credit offered by this supplier? ssume 360 days per year.) ANSWER 2a. 15 6 b. 17 19 Discount percent 20Days credit received 2Days of free trade credit 22Periodic cost of trade credit 23Number of discount periods per year -24 ,-. Approximate % cost 20 27S%) 3 /95 360 / 60.20-0.0309 x 9-0.2781 100-27,S% 25 27 Assigned Pryr Assigned P Assigned Problem 2