Safety Window and Door Co

Multiple Choice

Safety Window and Door Co.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 $450,000 per year.On average, how much "free" trade credit does the firm receive during the year? (Assume a 365-day year, and note that purchases are net of discounts.)

A) $18,493
B) $19,418
C) $20,389
D) $21,408
E) $22,479