AACP and Accounts Receivable Kyoto Joe, Inc, sells earnings forecasts for Japanese securities. Its credit terms are

Question:

AACP and Accounts Receivable Kyoto Joe, Inc, sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 70 percent of all customers will take the discount.

a. What is the average collection period for Kyoto Joe?

b. If Kyoto Joe sells 1,500 forecasts every month at a price of $1,900 each, what is its average balance sheet amount in accounts receivable?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...