Me Dowel Indusines sels on terms of3/0. net 30. Total sales for the vear are 3 900.000. Forty percent of the customers pay on the 10" day and take discounts; the other 60 percent day. on average. 40 davs after their purchases. a) What is the days sales outstanding? B)what is the average amount or receivable? C) What would happen to average receivable if McDowell toughened up on its collection policy win the result that all non-discount customers paid on the 30th day?

McDowell Industries sells on terms of 3/10. net 30. Total sales for the year are $ 900.000. Forty percent of the customers pay on the 10 day and take discounts; the other 60 percent pavy on average. 40 days after their purchases. a) What is the days sales outstanding? What IS the average amount or receivable!? What would happen to average receivable if McDowel toughened up on its collection policy with the result that all non-discount customers paid on the 30th day?