3. 3.

ACP and accounts receivable [LO 20.1] Kyoto Joe Limited sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 70 per cent of all customers will take the discount.

1. What is the average collection period for the company?

2. If the company sells 1 120 forecasts every month at a price of $1 580 each, what is its average statement of financial position amount in accounts receivable?