3. Accounts receivable Effective credit management involves establishing credit standards for extending credit to customers, determining the company's credit terms, and. setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit manopement policy. Select the best term to complete the sentenco. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company's Consider the case of Westem Gas s. Electric Co.: Westem Gas 8 . Eectric Co. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Western Gas 8 Electric Co. sells to its customers on credit terms of 2/10, net 30. If a customer bought $150,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Western Gas 8 . Flectric Co, get. from the customer? $157,500 5147,000 $131,250 $123,750 If the customer paid olf the account after 15 days, Western Gas \& Electric Co. would receive Approximatety 30% of Western Gas \& Electric Co.'s customers take advantage of the discount and pay on the 10 th day. The remaining 70 s take an average of 35 days to pay off their accounts, What is Western Gas \& Electric Co's days sales outstanding (DSO), or the average coliection period? 31.62 days 28.88 days 27,50 days 30.25 deys