Taylor Glass has annual sales of $1,750,000 Although it extends credit for 30 days (n30), the receivables are 20 days overdue What is the average accounts receivable outstanding, and how much could the company save in interest expense if customers paid on time and if it costs Taylor Glass 10 percen...

Determination of current accounts receivable Credit sales ...

Taylor Glass has annual sales of $1,750,000. Although it extends credit for 30 days (n30), the receivables

Question:

Taylor Glass has annual sales of $1,750,000. Although it extends credit for 30 days (n30), the receivables are 20 days overdue. What is the average outstanding, and how much could the company save in interest expense if customers paid on time and if it costs Taylor
Glass 10 percent to carry its receivables?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...