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Question
Arnold Inc. purchases merchandise on terms of 2/10 net 30, and it always pays on the 30th day. The CFO calculates that the average amount of costly trade credit carried is $375,000. What is the firm's average accounts payable balance? (Assume a 365-day year.)a. $458,160
b. $482,273
c. $507,656
d. $534,375
e. $562,500
Answer
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