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Suppose your firm buys $1,000 worth of supplies on credit with terms 3/15 n60.
a. If you pay the bill on the 14th day after the purchase, what is the cost of the trade credit you have used for the 14-day period?
b. If you pay the bill on the 50th day after the purchase, what is the cost of the trade credit you have used for the 35-day period after the discount period ended?
Pass Journal passages to close the books of the firm and show Realization Account, Bank Account, and the Capital Accounts of the considerable number of accomplices.
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