Dalrymple Grocers Buys on Credit Terms of 2/10, Net 30

question 43

Multiple Choice

Dalrymple Grocers buys on credit terms of 2/10, net 30 days, and it always pays on the 30th day. Dalrymple calculates that its annual costly trade credit is $375,000. What is the firm's average accounts payable balance? Assume a 365-day year.

• A) $187,475
• B) $374,951
• C) $223,333
• D) $562,426
• E) $457,443

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