2. Cash discount. Compute the cost of not taking the following cash discounts. a. 2/10,...

Question

Question

2. Cash discount. Compute the cost of not taking the following cash discounts.

a. 2/10, net 40.

b. 2/15, net 30.

c. 2/10, net 45.

d. 3/10, net 90.

Answer 1

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Answer #1

Cost of not taking a cash-Discount % discount % 360 Final due date Discount period 100%-Disc.%

a. Cost of lost discount 2% 98% 360 40-10 2.04% x 12.00-24.48%

b. 2% 360 Cost of lost discount 270 500- X 2.04% x 24.00 48.96% 98% . 30-15

c. Cost of lost discount 2% 360 98% 45-10 2.04% x 10.29-20.99%

d. Cost of lost discount 390 360 97% -3.09%x 4.50-13.91% x 90-10

Answer 2

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