Most common evidence of debt when sale is made on credit

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Reference no: EM131925121

1. On February 14, Coal's Retail purchased $14,300 worth of inventory. The terms of sale were 2/10, net 45. The dollar amount of implicit interest charged if they do not pay the discounted price is ________ and the Annual Percentage Rate (APR) is _____ percent.

a. $572; 74.50

b. $286; 21.28

c. $572; 2.041

d. $14,014; 21.28

e. $286; 37.25

2. Which one of the following would be the most common evidence of a debt when a sale is made on credit?

a. Invoice

b. Promissory note

c. Commercial draft

d. Banker's acceptance

e. Sight draft

Reference no: EM131925121

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