Total Tools Ltd. sells 20,000 toolkits a year at an average price per set of $120. All
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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.
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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