Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based

Question:

Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 60 percent of all customers will take the discount.

a. What is the average collection period?

b. If the company sells 1,200 forecasts every month at a price of $2,300 each, what is its average balance sheet amount in accounts receivable?

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...