Average collection period for kyoto joe


Problem:

Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 4.0/15, net 90. Based on experience, 60 percent of all customers will take the discount.

Requirement:

Question 1: What is the average collection period for Kyoto Joe?

Question 2: If Kyoto Joe sells 1,080 forecasts every month at a price of $2,000 each, what is its average balance sheet amount in accounts receivable?

Note: Explain all steps comprehensively.

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Accounting Basics: Average collection period for kyoto joe
Reference No:- TGS0892000

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