Problemhowe industries sells on terms of 2 10 net 40 gross, Ask an Expert

Accounting

Problem:

Howe Industries sells on terms of 2/ 10, net 40. Gross sales last year were $ 4.5 million, and accounts receivable averaged $ 437,500. Half of Howe's customers paid on Day 10 and took discounts.

Required:

Question: What is the cost of trade credit to Howe's non-discount customers?

Note: Please answer in proper manner and show all computations

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170616

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