Effective credit management involves establishing credit standards for extending credit to customers, determining the companys 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 companys . 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 3/10, net 30. If a customer bought $200,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Wok Bar Co. get from the customer? $170,000 $165,000 $194,000 $200,000 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? 21.00 days 28.88 days 26.25 days 23.63 days