Answer:
$13698.63
Explanation:
Data provided as per the question
Net purchase amount = $500,000
Terms = 2/10 net 60 days
The computation of free trade credit is shown below:-
Cycle purchase per credit = $500,000 × 60 ÷ 365
= $82,191.78
Per credit cycle of free trade
= $82,191.78 × 10 ÷ 60
= $13698.63
Therefore, for computing the per credit cycle of free trade we simply divide days by total number of days multiply by cycle purchase per credit.
