The Company Mc Graw Hill produces and sells 2 Million books every year. The average selling price for the books is 150€ per unit, the average cost of those books is 75€ per unit. They are selling the books with a standardized credit terms of 1/3 n30. The discount is not being received by the customers as a good proposal, so nobody pays with discount. Which is the value of the accounts receivable assuming sales are evenly distributed? The company wants to reduce their debt, so they are now changing their credit terms to 5/1 net 30.

Calculate the value of the accounts receivable assuming sales are evenly distributed and 20% of their customers take the discount.

Answer rating: 100% (QA)

To calculate the value of accounts receivable we need to consider the average selling price per book ... View the full answer