Foster industries sells on terms of 210 net 35 gross sales, Ask an Expert

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Foster Industries sells on terms of 2/10, net 35. Gross sales last year were $450,000, and accounts receivable averaged $60,000. Half of Foster's customers paid on Day 10 and took discounts.

(a) What are Foster's sales net of cash discounts taken?

(b) What is the total dollar finance charge paid by the non-discount-paying customers?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92217606

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