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: Please show guided help with steps and answer.