Question
Problem 12.34 A firm sells $123,500 of its accounts receivable to factors at a 1 percent discount. The firms average collection period is one month.
Problem 12.34
A firm sells $123,500 of its accounts receivable to factors at a 1 percent discount. The firms average collection period is one month. What is the dollar cost of the factoring service? (Round answer to nearest whole dollar, e.g. 5,275.)
The dollar cost of the factoring service fee is $ _____________
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
