What is the cost on an annual basis


Question:

If a retailer's terms of trade are 3/10, net 45 with a particular supplier, what is the cost on an annual basis of not taking the discount? Assume a 360-day year.

1. 24.00%
2. 37.11%
3. 36.00%
4. 31.81%

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Accounting Basics: What is the cost on an annual basis
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