Question: d-2. Should Maddox Resources offer the discount ? multiple choice 2 Yes C No Explanation a-1 & 2. Sales / 365 days = average daily

d-2. Should Maddox Resources offer the discount ? multiple choice 2 Yes C No Explanation a-1 & 2. Sales / 365 days = average daily sales $188,000 / 365 = $515.07 Accounts receivable balance = $515.07 x 30 days = $15,452 365 Accounts receivable turnover = Average collection period 365 days = 12. 17 x 30 days OR : Sales $ 188, 000 Turnov Accounts $ 15, 452 X er receivable b. $515.07 x 10 days = $5,151 new receivable balance C-1. Old receivables New = Funds freed by discount receivables $ 15, 452 - $5, 151 = $10, 301

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