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ABC ltd acquired goods on credit worth 1,200,000. There is no trade discount that was...

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Accounting

ABC ltd acquired goods on credit worth 1,200,000. There is no trade discount that was offered but the suppliers specified 7.5/10 net 45. The cost of borrowing through an overdraft is 19.5%. Required; Advice whether the management should make the settlement within the discount period and show all the adjusting journal entries.

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