You place an order for 300 units of inventory at a unit price of $135. The supplier offers terms of 3/10, net 60. a-1. How long do you have to pay before the account is overdue? a-2. If you take the full period, how much should you remit?

a1. 60 days

a2. Remittance = $40,500

b1 - 1 % discount offered

b-2, 10days

b-3 = $40,095 ± 0.1

c-1 Implicit interest $405 ± 0.1%

c-2 Days' credit days=50 days

Explanation:

a1. 60 days

a2.0rder for 300 units of inventory at a unit price of $135

Remittance = 300 ($135)

Remittance = $40,500

b - 1 % discount offered

b-2, 10days

b-3 Remittance (1 - 0.01) $40,500

(0.99) $40,500

Remittance = $40,095 ± 0.1%

c-1 Implicit interest $40,500 - $40,095

Implicit interest $405 ± 0.1%

c-2

Days' credit days 60-10

Days' credit days=50 days