ACP and Accounts Receivable

Galapagos Garcia, Inc., sells earnings forecasts for Island securities$.$ Its credit terms are $3/10,$ net $60.$ Based on experience, $60$ percent of all customers will take the discount.

PART A:

What is the average collection period for Galapagos Garcia?

ACP: $$ days.

Answer: $30$

Question $23$

$\frac{0}{5}$ points

PART B:

If Galapagos Garcia sells $210$ forecasts every month at a price of $$12,000$ each, what is its average balance sheet amount in accounts receivable? $($Hint: calculate annual sales then divide by $365$ to get daily sales.$)$

Average Accounts Receivable: $