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 minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Tun Ash Inc.: Tun Ash Inc. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Tun Ash Inc. sells to its customers on credit terms of 2/10, net 30. If a customer bought $100,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Tun Ash Inc. get from the customer? O $82,500 $98,000 $105,000 O $87,500 If the customer paid off the account after 15 days, Tun Ash Inc. would receive Approximately 30% of Tun Ash Inc.'s customers take advantage of the discount and pay on the 10th day. The remaining 70% take an average of 35 days to pay off their accounts. What is Tun Ash Inc.'s days sales outstanding (DSO), or the average collection period? O 30.25 days O 31.62 days 28.88 days O 27.50 days