A company sells on credit terms of 2/10, n/30 and has days sales in accounts receivable of

Question:

A company sells on credit terms of 2/10, n/30 and has days’ sales in accounts receivable of 30.2 days. Its days’ sales outstanding is

a. Too low.

b. Too high.
c. About right.
d. Not able to be evaluated from the data given.

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...

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