Ingram Office Supplies,Inc

Ingram Office Supplies,Inc.,buys on terms of 2/15,net 50 days.It does not take discounts,and it typically pays on time,50 days after the invoice date.Net purchases amount to $450,000 per year.On average,what is the dollar amount of costly trade credit (total credit − free credit) the firm receives during the year? (Assume a 365-day year,and note that purchases are net of discounts.)

A) $43,151
B) $45,308
C) $47,574
D) $49,952
E) $52,450

Correct Answer:

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