Answer and Explanation:
To compute the cost of not taking the trade discounts, we need to understand what the given terms mean.
The trade discounts are expressed as a percentage followed by the terms "net" and a number of days. The percentage represents the discount that is offered, and the number of days represents the credit period within which the payment is due.
a. 1/10, net 20:
This means that a 1% discount is offered if payment is made within 10 days, and the full payment is due within 20 days.
b. 2/15, net 30:
This means that a 2% discount is offered if payment is made within 15 days, and the full payment is due within 30 days.
c. 2/10, net 45:
This means that a 2% discount is offered if payment is made within 10 days, and the full payment is due within 45 days.
d. 3/10, net 180:
This means that a 3% discount is offered if payment is made within 10 days, and the full payment is due within 180 days.
To compute the cost of not taking the trade discounts, we need to calculate the amount of the discount and subtract it from the total amount.
Let's say the total amount of the purchase is $100.
a. 1/10, net 20:
The discount is 1% of $100, which is $1. If the discount is not taken, the cost would be $100 - $1 = $99.
b. 2/15, net 30:
The discount is 2% of $100, which is $2. If the discount is not taken, the cost would be $100 - $2 = $98.
c. 2/10, net 45:
The discount is 2% of $100, which is $2. If the discount is not taken, the cost would be $100 - $2 = $98.
d. 3/10, net 180:
The discount is 3% of $100, which is $3. If the discount is not taken, the cost would be $100 - $3 = $97.
So, the cost of not taking the trade discounts would be $99 for option a, $98 for options b and c, and $97 for option d.