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    Average accounts payable

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    A chain of appliance stores, APP Corporation, purchases inventory with a net price of $500,000 each day. The company purchases the inventory under the credit terms of 2/15, net 40. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:54 am ad1c9bdddf
    https://brainmass.com/economics/finance/finding-the-average-accounts-payable-app-corporation-312508

    Solution Summary

    The solution explains how to calculate the average accounts payable amount.

    $2.19