CHAPTER 17 h Discounts. You place an order for 540 units of Good X at a unit of $62. The supplier terms of 1/10, net 30. How long do you have to pay before the account is overdue? If you take full period. how much should you remit? What is the discount be ng If discount? If you do take the must pay to get you don't take discount, how much should you remit licitly? the discount, how much interest are you paying lating How many days' credit are you receiving checks Float. In a typical month, the Gulley Corporation receives 100 totaling $59.200. These are delayed three days on average What is erage daily float? Assume 30 days in a month lculating Net Float. Each business day. on average, a company writes checks totaling S23 4000 to pay its suppliers. The usual clearing for tho checks is four days. Meanwhile, the company is receiving payments from its customers each day. in the form of checks, totaling s38.100. The cash from payments is available to the firm after two days. a. Calculate the company's disbursement float, collection float, and How would your answer to part change if the collected funds were available in one day instead of two? size of Accounts Receivable. Essence of Skunk Fragrances, Ltd., sells 00 units of its perfume collection each year at a price per unit of S235 All sales are on credit with terms of l/10, net 30. The discount is taken by 40 percent of the customers. What is the amount of the company's accounts In reaction to sales by its main competitor, sewage spray. Essence of Skunk is considering a change in its credit policy to terms of affect accounts receivable? Size of Accounts Receivable. The Bates Corporation has annual credit sales of $31.2 million. The average collection period is 33 days. What is the average investment in accounts receivable as shown on the balance sheet? 9 ACP and Accounts Receivable. Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net 30. Based on experience, 55 percent of all customers will take the discount. hat is the average collection period? If the company sells 1.250 forecasts every month at a price of $2,300 each, what is its average balance sheet amount in accounts receivable? size of Accounts Receivable. Two Doors Down, Inc., has weekly credit of $31.800, and the average collection period is 36 days. What is th company's average accounts receivable figure? s of sale. A firm offers terms of l/10, net 30. What effective annu rate does the firm earn when a customer does not take the disco ithout doing any calculations, explain what will happen to this effective rate i 583