A wholesaler sells on terms of 115 net 45 gross sales last


A wholesaler sells on terms of 1/15, net 45. Gross sales last year were $6,935,000, and accounts receivable averaged $665,000. Half of its customers paid on the 15th day and took discounts. What are the nominal and effective costs of trade credit to the wholesaler's nondiscount customers?

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Financial Management: A wholesaler sells on terms of 115 net 45 gross sales last
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