6. Accounts receivable Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms of credit, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company's dit collection policy credit standards Consider the case of wok Wok Bar Co. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Wok Bar Co. sells to its customers on credit terms of 1/10, 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 wok Bar Co. get from the customer? $135,000 O $148,500 $131,250 $150,000 If the customer paid off the account after 15 days, wok Bar Co. would receive Approximately 25% of wok Bar co.'s customers take advantage of the discount and pay on the 10th day. The remaining 75% take an average of 35 days to pay off their accounts, what is wok Bar Co.'s days sales outstanding (DSO), or the average collection period? 23.0 days 25.9 days O 28.8 days O 24.5 days