Show free trade credit firm receive during the year

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Reference no: EM1311066

"Free" trade credit firm receive during the year.

Filbeck Company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to $500,000 per year. On average, how much "free" trade credit does the firm receive during the year? (Assume a 365-day year.)

a) $20,548

b) $21,575

c) $22,654

d) $23,787

e) $24,976

Reference no: EM1311066

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