your firm has an average collection period of 60 days. if the company waits to cash the credit sales from the customer, it takes 60 days to cash the accounts receivable. current practice of your financial manager is to give a 4% discount to any customer that pays their debt immediately rather than waiting for customers to pay their bills later.

e.g $100 accounts reliable, which is supposed to be collected 60 days from now is paid 96% today. which of the following is = to the cost of discount sales from the firm? assume a year has 360 days.

a). 26.0%

b). 5.5%

c). 25.5%

d). 4%

e). 4.2%

*note: dont use excel