8. Accounts receivable Aa Aa E 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. The minimum financial strength a customer must have to be granted credit is indicated by the company's credit standards credit terms credit standards collection policy CUTTUer the case or Mammoth Pictures Inc.: Mammoth Pictures Inc. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Mammoth Pictures Inc. sells to its customers on credit terms of 3/10, 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 Mammoth Pictures Inc. get from the customer? O O O $105,000 $87,500 $97,000 $92,500 If the customer paid off the account after 15 days, Mammoth Pictures Inc. would receive If a customer bought $100,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Mammoth Pictures Inc. get from the customer? $105,000 $87,500 $97,000 $92,500 If the customer paid off the account after 15 days, Mammoth Pictures Inc. would receive $92,500 $100,000 $82,500 Approximately 30% of Mammoth Pictures Inc.'s customers take advantage of the discount $90.000 he 10th day. The remaining 70% take an average of 35 days to pay off their accounts. What is Mammden Pictures Inc.'s day outstanding (DSO), or the average collection period? O 33.0 days 27.5 days O 31.6 days 22.0 days If a customer bought $100,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Mammoth Pictures Inc. get from the customer? $105,000 $87,500 $97,000 $92,500 If the customer paid off the account after 15 days, Mammoth Pictures Inc. would receive Approximately 30% of Mammoth Pictures Inc.'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 Mammoth Pictures Inc.'s days sales outstanding (DSO), or the average collection period? 33.0 days 27.5 days O 31.6 days 22.0 days