Buskirk Construction Buys on Terms of 2/15,net 60 Days

question 7

Multiple Choice

Buskirk Construction buys on terms of 2/15,net 60 days.It does not take discounts,and it typically pays on time,60 days after the invoice date.Net purchases amount to $450,000 per year.On average,how much "free" trade credit does the firm receive during the year? (Assume a 365-day year,and note that purchases are net of discounts.)

• A)$18,493
• B)$19,418
• C)$20,389
• D)$21,408
• E)$22,479

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Definitions:

Obedience

The act of following orders or commands from authority figures, even if it contrasts with personal beliefs or values.

Stereotyping

The act of assigning a fixed, oversimplified, and often prejudiced idea or identity to a group of people or things.

Validate

To confirm or give approval to something after examining or testing it to be true, correct, or in accordance with a certain standard.

Accurately

Refers to the quality of being correct and precise in all details.