Kyoto Joe Inc. sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 65 percent of all customers will take the discount.
a. What is the average collection period for Kyoto Joe?
b. If Kyoto Joe sells 1,300 forecasts every month at a price of $1,700 each, what is its average balance sheet amount in accounts receivable?