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trapecia [35]
3 years ago
11

Newsome Inc. buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nomi

nal annual percentage cost of its non-free trade credit, based on a 365-day year?
Business
1 answer:
gogolik [260]3 years ago
5 0

Answer:

16.22%

Explanation:

3/15, net 45 means that if Newsome pays within 15 days, it will get discount of 3%, otherwise it can pay within 45 days in full.

Nominal annual percentage cost of  non-free trade credit based on 365 days can be calculated using the below formula:

Discount %/(100%-Discount %)*(365/(Actual credit days – Discount days))

In this case

Discount%=2%

Actual credit days=60

Discount period=15

Cost of non- free credit=2%/(100%-2%)*(365/(60-15)

                                       =2%/98%*(365/45)

                                       =0.02*8.11

                                       =16.22%

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Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company returns $200
Vladimir79 [104]

Answer:

Amount of Check = $784

so correct option is a. $784

Explanation:

given data

Merchandise on account = $1,000

Long Company returns  = $200

credit terms =  2/10

n/30

to find out

What is the amount of the check

solution

we know here that Total Merchandise will be

Total Merchandise = Merchandise on account  - returns   ....................1

Total Merchandise = $1000 - $200

Total Merchandise = $800

and

discount will be here

Discount = 0.02  ×  800

returns = $16

so

Amount of Check will be as

Amount of Check = Total Merchandise - Discount   ...................2

put here value

Amount of Check = Total Merchandise - Discount  

Amount of Check = $800 - $16

Amount of Check = $784

so correct option is a. $784

7 0
3 years ago
Which staff member usually does the work of both a front desk clerk and an accounting clerk?
fomenos
D for sure is the correct answer
8 0
3 years ago
Lakesha does not have enough in her bank account to use a debit card for the purchase of a bike she needs to get to work. She ha
Bezzdna [24]

Answer:

]-0]-]'-0]

Explanation:

7 0
2 years ago
Bebe Rexha has AGI of $100,000 and makes the following expenditures:
shutvik [7]

Answer:

$31000 will be allowed as expenditure

Explanation:

given data

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Whirlpool bath = $10,000

Maintenance =  $1,000

Increased utility bills =  $1,000

various home modifications = $10,000

solution

as here value of the home increased =  $1000

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7 0
3 years ago
Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple ma
AleksAgata [21]

Answer:

The correct answer is number "3": doesn't reduce quality or increase price.

Explanation:

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3 0
3 years ago
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