Question
Dome Metals has credit sales of $360,000 yearly with credit terms of net 45 days, which is also the average collection period. Dome does not
Dome Metals has credit sales of $360,000 yearly with credit terms of net 45 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take the full 45 days to pay.
a. What is the average receivables balance?
b. What is the receivables turnover? (Use a 360-day year.)
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
