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MernoMate, a manufacturer of phone answering machines, is analyzing the credit terms of three of its suppliers, shown below. Its cost of borrowing from its
MernoMate, a manufacturer of phone answering machines, is analyzing the credit terms of
three of its
suppliers, shown below. Its cost of borrowing from its bank is 14%.
Supplier Credit Terms
1 1/10 net 45
2 2/15 net 30
3 2/10 net 35
From which, if any, of the suppliers should the cash discount be taken, and why?
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Fundamental Accounting Principles Volume 1
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
15th Canadian Edition
