In: Accounting
The Dithers Company's major supplier had been extending credit on Terms Of Trade 2/10 net 30. Dithers takes all discounts as a matter of policy.
a. Please describe the Terms of Trade presented
above.
b. What is the Cost of
Failing To Take the Discount for Dithers based on the Terms of
Trade referenced above ? (Be sure to show all
computations).
c.. How might Dithers' Balance Sheet change if the supplier switches to Terms of Trade Net 30 ? Explain.