Filbeck Company Buys on Terms of 2/15,net 30 Days

question 80

Multiple Choice

Filbeck Company buys on terms of 2/15,net 30 days.It does not take discounts,and it typically pays 30 days after the invoice date.Net purchases amount to $500,000 per year.On average,how much free trade credit does the firm receive during a 365-day year?

• A)$20,548
• B)$21,575
• C)$22,654
• D)$23,787

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Definitions:

Glaucoma

A condition in which too much pressure is created in the eye by excessive aqueous humor. This excess pressure can lead to permanent damage of the optic nerves, resulting in blindness.

Cataracts

Cloudy areas that form in the lens of the eye that prevent light from reaching visual receptors.

Conjunctivitis

A contagious infection of the conjunctiva caused by bacteria, viruses, and allergies. The symptoms may include discharge, red eyes, itching, and swollen eyelids; also commonly called pinkeye.

Cataracts

A condition where the lens of the eye becomes progressively opaque, leading to blurred vision.