Kirk Development Buys on Terms of 2/15,net 60 Days

Question 115
Multiple Choice

Kirk Development buys on terms of 2/15,net 60 days.It does not take discounts,and it typically pays on time,60 days after the invoice date.Net purchases amount to $475,000 per year.On average,what is the dollar amount of total trade credit (costly + free)the firm receives during the year,i.e. ,what are its average accounts payable? (Assume a 365-day year,and note that purchases are net of discounts. ) A) $78,082 B) $96,822 C) $60,904 D) $78,863 E) $91,356