Question
The Sharpe Corporation makes inventory purchases on terms of 2.5/15, net 40. It DOES NOT take the discount and it generally pays after 40 days.
The Sharpe Corporation makes inventory purchases on terms of 2.5/15, net 40. It DOES NOT take the discount and it generally pays after 40 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
