Total Tools Ltd. sells 20,000 toolkits a year at an average price per set of $120. All sales are credited with terms of 2/10, net 45. The discount amount is applied to a customer's account only after receiving and processing payments. Total Tool Ltd has found that 80% of its customers take advantage of the discounted price. What is the amount of the firm's average accounts receivable? Assume a 365-day year.

Answer rating: 100% (QA)

To calculate the amount of the firms average accounts receivable we need to consider the time it tak... View the full answer