ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units at P2,500 each throughout the 365-day are on credit. On average, 40% take the cash discount by paying on tenth day while the remaining 60% pay on It is planning to change the credit terms to 2/10, n/25. If this change was done, daily sales will be 180 units. A pay on the tenth day while the remaining 55% will pay on the 25h day. 1. What is the original average accounts receivable balance based on the given? 2. What is the original average collection period of the receivables in days? 3. What is the original receivable turnover? Round off to two decimal places. 4. What will be the new average accounts receivable balance based on the given? 5. What will be the new average collection period of the receivables in days? Whet ..
ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units at P2,500 each throughout the 365-day are on credit. On average, 40% take the cash discount by paying on tenth day while the remaining 60% pay on It is planning to change the credit terms to 2/10, n/25. If this change was done, daily sales will be 180 units. A pay on the tenth day while the remaining 55% will pay on the 25h day. 1. What is the original average accounts receivable balance based on the given? 2. What is the original average collection period of the receivables in days? 3. What is the original receivable turnover? Round off to two decimal places. 4. What will be the new average accounts receivable balance based on the given? 5. What will be the new average collection period of the receivables in days? Whet ..
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 12PROB
Related questions
Question
Show the solution in good accounting form
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College