20.5 The customer pays bills 45 days after the invoice date. Because goods are purchased daily, at...
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20.5 The customer pays bills 45 days after the invoice date. Because goods are purchased daily, at any time there will be bills outstanding with "ages" ranging from 1 to 45 days. At any time, the customer will have 30 days' worth of purchases, or $10,000, outstanding for a period of up to 1 month and have 15 days' worth of purchases, or $5,000, outstanding for between 1 month and 45 days. The aging schedule will appear as follows: Age of Account <1 month 1-2 months Amount $10,000 5,000
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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