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. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company's Consider the case of Ziff Corp.: Ziff Corp. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Ziff Corp, 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 Ziff Corp. get from the customer? $100,000 O $122,500 O $106,250 O $103,125 If the customer pald off the account after 15 days, ziff Corp. would receive Approximately 20% of Ziff Corp.'s customers take advantage of the discount and pay on the 10th day. The remaining 80% take an average of 35 days to pay off their accounts, what is Ziff Corp.'s days sales outstanding (DSO), or the average collection period? O 34.5 days O 36.0 days O 30.0 days 27.0 days