Effective credit management involves establishing credit standards for extending credit to customers, determining the 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. The minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Wok Bar Co.: Wok Bar Co. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Wok Bar Co. sells to its customers on credit terms of 2/10, net 30. If a customer bought $125,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Wok Bar Co. get from the customer? O $112,500 $125,00o $131,250 O $122,500 If the customer paid off the account after 15 days, Wok Bar Co. would receive Approximately 35% of wok Bar Co.'s customers take advantage of the discount and pay on the 10th day. The remaining 65% take an average of 35 days to pay off their accounts, what is wok Bar Co.'s days sales outstanding (DSO), or the average collection period? O 28.9 days 31.6 days 30.2 days O 26.3 days