Larrys Lawn Equipment Company gives terms of 2 10, n 30 Larry has annual credit sales of $500,000 and average accounts receivable of $60,000 a What is Larrys accounts receivable turnover b What is Larrys average daily collection c What is the relationship between the terms that Larry is giving and ...

a Accounts Receivable turnover Credit SalesAccou ...

Larrys Lawn Equipment Company gives terms of 2/10, n/30. Larry has annual credit sales of $500,000 and

Question:

Larry’s Lawn Equipment Company gives terms of 2/10, n/30. Larry has annual credit sales of $500,000 and average of $60,000.
a. What is Larry’s turnover?
b. What is Larry’s average daily collection?
c. What is the relationship between the terms that Larry is giving and his average daily collection?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...