Effective credit management involves establishing credit standards for extending credit to customers, determining the company's credit terms, 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. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company's credit terms Consider the case of Osato Chemicals Inc.: collection policy credit standards Osato Chemicals Inc. has a very attractive credit policy, and none of its customers pays in cash when commu Sale. Osato Chemicals Inc. sells to its customers on credit terms of 3/10, net 30. If a customer bought $150,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Osato Chemicals Inc. get from the customer? $127,500 $123,750 $157,500 O $145,500 If the customer paid off the account after 15 days, Osato Chemicals Inc. would receive $123,750 Approximately 30% of Osato Chemicals Inc.'s customers take advantage of the discount the 10th day. The remaining 70% take an average of 35 days to pay off their accounts. What is Osato Chemicals Inc.'s days sales $157,500 (DSO), or the average collection period? 127500 30.25 days $150,000 28.88 days 27.50 days 24.75 days