Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms...

 

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Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms of credit, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Sombra Corp.: Sombra Corp. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Sombra Corp. sells to its customers on credit terms of 2/10, net 30. If a customer bought $150,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Sombra Corp. get from the customer? (Note: Round your answer to the nearest whole dollar.) $135,000 $147,000 $123,750 $127,500 If the customer paid off the account after 15 days, Sombra Corp. would receive dollar.) Approximately 20% of Sombra Corp.'s customers take advantage of the discount and pay on the 10th day. The remaining 80% take an average of 35 days to pay off their accounts. What is Sombra Corp.'s days sales outstanding (DSO), or the average collection period? (Note: Do not round intermediate calculations. Round your answer to one decimal place.) 28.5 days 27.0 days 33.0 days (Note: Round your answer to the nearest whole 30.0 days Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms of credit, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Sombra Corp.: Sombra Corp. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Sombra Corp. sells to its customers on credit terms of 2/10, net 30. If a customer bought $150,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Sombra Corp. get from the customer? (Note: Round your answer to the nearest whole dollar.) $135,000 $147,000 $123,750 $127,500 If the customer paid off the account after 15 days, Sombra Corp. would receive dollar.) Approximately 20% of Sombra Corp.'s customers take advantage of the discount and pay on the 10th day. The remaining 80% take an average of 35 days to pay off their accounts. What is Sombra Corp.'s days sales outstanding (DSO), or the average collection period? (Note: Do not round intermediate calculations. Round your answer to one decimal place.) 28.5 days 27.0 days 33.0 days (Note: Round your answer to the nearest whole 30.0 days

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