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The conditions of the credit sale, including cash discounts and due dates, are indicated by the company's Consider the case of Tun Ash Inc.: Tun
The conditions of the credit sale, including cash discounts and due dates, are 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 3/10, net 30. If a customer bought $175,000 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 $169,750 O $175,000 $183,750 O $144,375 If the customer paid off the account after 15 days, Tun Ash Inc. would receive Approximately 25% of Tun Ash Inc.'s customers take advantage of the discount and pay on the 10th day. The remaining 75% 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 28.8 days 30.2 days O 27.4 days O 25.9 days
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