Best Corp. USA offers credit terms of 2/10, net 45. Total sales for the year...
50.1K
Verified Solution
Link Copied!
Question
Finance
Best Corp. USA offers credit terms of 2/10, net 45. Total sales for the year are $1,500,000. 30% of customers pay on the 10th day and take the discount; the other 70% pay on average 50 days after their purchases.
1. What is the DSO (days sales outstanding)?
2. What is the average amount of receivables?
3. What would the new DSO and average receivables be if Best Corp. USA toughened its collection policy with the result that all nondiscount customers paid on the 45th day?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
