The Tropeland Company has obtained the following information: Annual Credit sales: $ 30 million Collection period: 60

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The Tropeland Company has obtained the following information:

Annual Credit sales: $ 30 million

Collection period: 60 days

Terms: Net 30

Interest Rate: 12%

The company is considering offering terms of 4/10 net30. It anticipates that 50% of its customers will take advantage of the discount. The collection period is expected to decrease by one month.

Should the new credit policy be adopted?

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Cost Accounting

ISBN: 978-0759338098

14th edition

Authors: William K. Carter

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Posted Date: Jun 14, 2019 09:45 AM

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The Tropeland Company has obtained the following information: Annual Credit sales: $ 30 million Collection period: 60

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Annual Credit sale 30000000 collection period 60 Terms net 30 Interest ... View the full answer

Cost Accounting

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