Problem:
Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 4.0/10, net 30. Based on experience, 45 percent of all customers will take the discount.
Required:
Question 1: What is the average collection period for Kyoto Joe? (Use 365 days a year.)
Question 2: If Kyoto Joe sells 890 forecasts every month at a price of $1,725 each, what is its average balance sheet amount in accounts receivable?
Note: Please provide full description.