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1. Fairview Clinic buys $500,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 5/10, net 30. What is Fairview Clinic’s costly trade credit?
A. $13,194
B. $39,583
C. $32,986
D. $26,389
E. $22,431
2. Fairview Clinic buys $500,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 5/10, net 30. What is Fairview Clinic’s free trade credit?
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