the lowing informa June July $220,000 S260,000 chandise purchases $150,000 S180,000 ney estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second r ney pays 30% of merchandise purchases in the month purchased and 70% in the following month. 200 2.000 af hie

the lowing informa June July $220,000 S260,000 chandise purchases $150,000 S180,000 ney estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second r ney pays 30% of merchandise purchases in the month purchased and 70% in the following month. 200 2.000 af hie

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and accounts receivable averaged 437,500. Half of Grunewalds customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewalds nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.)
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