Aggarwal Inc. buys on terms of 2/10, net 30, and it always pays on the 30th day. The CFO calculates that the average amount of costly trade credit carried is $350,000. What is the firm's average accounts payable balance? Assume a 365-day year.
A. $425,250
B. $504,000
C. $525,000
D. $556,500
E. $514,500
Answer: C
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