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A company sells on terms of 3/10, net 30. Total sales for the year are $949,000. On average, fifty percent of the customers pay on
A company sells on terms of 3/10, net 30. Total sales for the year are $949,000. On average, fifty percent of the customers pay on the 10th day and the rest pay on the 40th day. Based on the information given, what is the average amount of receivables? What would happen to average receivables if the company toughened up on its collection policy with the result that all nondiscount customers paid on the 30th day?
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