The Hewitt Company has calculated that their average collection period (ACP) is 25 days. They are hoping that the new cash discounts they have implemented will reduce the ACP. After one month, they have the following data: 60% pay in 15 days and 40% pay in 30 days. How much is the change in the ACP?

Multiple Choice

• 4 days reduced

• 4 days increased

• 17 days increased

• 21 days reduced

• No change

Answer rating: 100% (QA)

Current Average Collection Period is 25 Days After a ... View the full answer