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5. Accounts receivable Aa Aa E Consider the case of Newtown Co.: Newtown Co. has a very attractive credit policy, and none of its customers
5. Accounts receivable Aa Aa E Consider the case of Newtown Co.: Newtown Co. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Newtown Co. sells to its customers on credit terms of 1/10, net 30. If a customer bought $100,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Newtown Co. get from the customer? $82,500 $85,000 $99,000 O $92,500 If the customer paid off the account after 15 days, Newtown Co. would receive Approximately 30% of Newtown Co.'s customers take advantage of the discount and pay on the 10th day. The remaining 70% take an average of 35 days to pay off their accounts. What is Newtown Co.'s days sales outstanding (DSO), or the average collection period? 0 26.1 days 33.0 days 0 27.5 days 28.9 days
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