For a $200,000 Trade Payable with Terms of 2/15,net 50,how

question 33

Multiple Choice

For a $200,000 trade payable with terms of 2/15,net 50,how much would be reported as "purchase discount lost" under the net method if a payment was made after 60 days?

• A)$0
• B)$4,000
• C)$5,000
• D)$30,000

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Definitions:

Present Value Factor

A factor used to calculate the present value of a future amount, reflecting the time value of money.

Annuities

Financial products that provide regular payments over a set period of time, often used as an income stream for retirees.

r

Often represents the rate of return or interest rate in financial equations and models.

APR

Annual Percentage Rate (APR) is a measure that depicts the actual yearly cost of funds over the term of a loan or the return on an investment, including any fees or additional costs associated with the transaction.