8. Accounts receivable Aa Aa 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, induding methods of invoicing and collecting past-due accounts, is indicated by the company's Consider the case of Three Waters Co.: Three Waters Co. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Three Waters Co. sells to its customers on credit terms of 1/10, net 30 If a customer bought $175,000 worth of goods and paid the fim cash eight days after the sale, how much cash would Three Waters Co. get from the customer? O $183,750 O $140,000 O $153,125 O $173,250 If the customer paid off the account after 15 days, Three Waters Co, would receive Approximately 40% of Three waters Co.'s customers take advantage of the discount and pay on the 10th day. The remaining 60% take an average of 35 days to pay off their accounts, what is Three waters Co.'s days sales outstanding (DSO), or the average collection period? O 21.3 days O 27.5 days O 25.0 days O 20.0 days