5-3 - Assignment Print View 8/9/10 10:28 AM Assume that the...

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Page 3 of 11 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview 2. award: 1 out of 1 point Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 8% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy. (Assume a 365-day year. Round your intermediate calculations and answers to 2 decimal places. Omit the "$" sign in your response.) Buyer's Net savings $ 277.81 ± 1 From the dropdown box beside each definition, select the letter of the term A through J that most closely describes the definition: A. Cash discount E. FOB shipping point H. Purchase discount B. Credit period F. Gross profit I. Sales discount C. Discount period G. Merchandise inventory J. Trade discount D. FOB destination C 1. Time period in which a cash discount is available. J
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