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A chain of appliance stores APP corporation purchases inventory with a net price of 550,000 each...

A chain of appliance stores APP corporation purchases inventory with a net price of 550,000 each day the company purchases the inventory under the credit terms of 2\15, net 40. APP always takes the discount but takes the full 15 days to pay its bills what is the average accounts payable for APP round your answer to the nearest dollar
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Answer #1

Average Accounts Payable - Net Price of the Inventory purchased per day x The Number of days the discount period -$550,000 x 15 Days $82,50,000 Therefore, the Average Accounts Payable for APP Corporation would be $82,50,000

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