Question
Do the following events INCREASE or DECREASE or have NO EFFECT on net working capital? Inventory is purchased on credit. A $100 account receivable is
Do the following events INCREASE or DECREASE or have NO EFFECT on net working capital?
Inventory is purchased on credit.
A $100 account receivable is discounted and sold for $97 cash.
The company has an open invoice for $100 but then chooses to take the 2% discount offered and pay $98 if paid within 10 days.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
