Problem:
Howe Industries sells on terms of 2/ 10, net 40. Gross sales last year were $ 4.5 million, and accounts receivable averaged $ 437,500. Half of Howe's customers paid on Day 10 and took discounts.
Required:
Question: What is the cost of trade credit to Howe's non-discount customers?
Note: Please answer in proper manner and show all computations