(Answered) Why is some trade credit called free while other credit is

Finance

Why is some trade credit called free while other credit is called costly? If a firm buys on terms 2/10, net 30, pays at the end of the 30th day and typically shows $300,000 of accounts payable on its balance sheet would the entire $300,000 be free credit, would it be costly credit, would some be free and some costly? Explain your answer. (No calculations necessary)

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