Determine the accounts receivable period


Response to the following problem:

A firm offers terms of 3/35, net 50. Currently, two-thirds of all customers take advantage of the trade discount; the remainder pay bills at the due date.

a. What will be the firm's typical value for its accounts receivable period? (Do not round intermediate calculations.)

b. What is the average investment in accounts receivable if annual sales are $20 million? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.).

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Financial Accounting: Determine the accounts receivable period
Reference No:- TGS02082387

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