13 National Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-fivepercent of the customers pay on the tenth day and take discounts; the other 65% pay, onaverage, 45 days after their purchases. What is the average amount of receivables? Use 360days *Format: 11,111

P81,875 is the average amount of receivables.

Answered: What is the average amount of…

Business

Accounting

What is the average amount of receivables?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6P

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

National Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five
percent of the customers pay on the tenth day and take discounts; the other 65% pay, on
average, 45 days after their purchases. What is the average amount of receivables? Use 360
days *
Format: 11,111

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