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1. Credit standards

Terms of credit

Collection policy

2. $87,500

$90,000

$80,000

$100,000

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 Consider the case of Osato Chemicals Inc.: Osato Chemicals Inc. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Osato Chemicals 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 Osato Chemicals Inc. get from the customer? O $87,500 O $97,000 $85,000 O $92,500 If the customer paid off the account after 15 days, Osato Chemicals Inc. would receive Approximately 25% of Osato Chemicals Inc.'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 Osato Chemicals Inc.'s days sales outstanding (DSO), or the average collection period? O 33.1 days O 28.8 days 0 23.0 days O 30.2 days