McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to Ksh 912,500,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 40 days after their purchases. a. What is the days’ sales outstanding? b. What is the average amount of receivables? c. What is the percentage cost of trade credit to customers who take the discount?

Q: Sanders Prime Time Company has annual credit sales of $1,800,000 and accounts receivable of…

A: Average collection period (ACP) is the time taken to collect the cash from its accounts receivables.…

Q: The company sells on terms 2/10, net 30.  Total sales for the year are P1,000,000, of which P100,000…

A: The average amount of account receivable is based on the customer who is paying early for grabbing…

Q: Abbot Communications has annual credit sales of $1,800,000 and accounts receivable of $190,000. What…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Cost of Trade Credit Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year…

A: Sale per day = $12,500 Discount sale = 0.5 ($12,500)                       = $6,250   Account…

Q: McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,947,000; 40% of…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: The company sells on terms 2/10, net 30.  Total sales for the year are P1,000,000, of which P100,000…

A: Total sales is the combination of cash sales and credit sales. Accounts receivables is the amount to…

Q: If Hot Tubs Inc. had annual credit sales of P2,027,773 and its days sales outstanding was equal to…

A: The calculation of average Accounts Receivables outstanding is shown hereunder : Annual credit sales…

Q: National Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five percent…

A: Sales = P 900000 35% pay on 10th day and 65% pay on 45th day. Let's find the days sales outstanding.

Q: Medwig Corporation has a DSO of 20 days. The company averages $3,500 in sales each day (all…

A: Accounts receivables are the money due towards the customers but not yet paid. The accounts…

Q: McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,921,000; 40% of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: KK Co. normally takes 30 days to pay for its average daily credit purchases of P2,000. Its average…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: McDowell Industries sells on terms of 4/10, net 40. Total sales for the year are $825,500. Thirty…

A: Discounted customers=15×30%=4.5 days

Q: Winther Company has a receivables turnover of 15 times. The average net receivables during the…

A: Winther company's Receivable turnover = 15 Average net receivables = P430000 Average net receivable…

Q: Snider Industries sells on terms of 2/10, net 45. Total sales for the year are$1,500,000. Thirty…

A: Part (a): Calculation of days' sales outstanding: Answer: Average amount of receivables is 38 days

Q: Last year, the Tilden Co. had credit sales in the amount of $470,000, and it had uncollectible…

A: Formula: Estimated uncollectible accounts = Credit sales x percent of estimated uncollectible…

Q: Golden Corporation have the following information from its books: Sales P1,600,000 Credit sales 90%…

A: Sales = P1,600,000 Credit sales are 90% of sales Average Collection period is 30 days Assume number…

Q: McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $912,500; 40% of…

A: Note:  This question has five subparts. The first three have been answered below.

Q: Howes Inc. buys on terms of 2/15, net 50 days. It does not take discounts, and it typically pays on…

A: Costly Trade credit= Total credit - free trade credit Purchase daily = Total purchase / number of…

Q: AL Enterprises purchases P4,562,500 in goods per year from its sole supplier on terms of 2/15, net…

A: Discount rate = 0.02 (i.e. 2%) Allowed payment days = 50 Discount days = 15

Q: McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to…

A: a) Computation of trade credit who do not take the discount and pay in 40 days is as follows:Nominal…

Q: Kirk Development buys on terms of 2/15, net 60 days.  It does not take discounts, and it typically…

A: The calculation is:

Q: Cost of Trade Credit Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year…

A: Given, The details about the Grunewald Industries. Grunewald Industries sells on terms = 2/10,net…

Q: Cook Security Systems has a $37,500 line credit, which charges an annual percentag ate of prime rate…

A: Prime rate :- The prime rate is the rate of interest charged by commercial banks to their most…

Q: McDowell Industries  sells on terms of 3/10, net 30. Total sales for the year are $912,500;  40% of…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Dome Metals has credit sales of $342,000 yearly with credit terms of net 45 days, which is also the…

A: The conceptual formula used:

Q: Lux Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five percent of…

A: Sales per day = Total sales / 360 Sales per day = P900,000 / 360 Sales per day = P2,500 Days' sales…

Q: The annual sales of a company are $47,000 including sales tax at 17.5%. Half of the sales are on…

A: We have the following information: Annual sales of the company: $47,000 Half of the sales are on…

Q: Medwig Corporation has a DSO of 38 days. The company averages $3,250 in sales each day (all…

A: Days sales outstanding (DSO) is the number of days the firm takes to collect cash from sales .…

Q: Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net…

A: Given information is: Credit terms = 1/10, net 50 Customers take discount = 75%

Q: Cost of Trade Credit Grunewald Industries sells on terms of 2/10, net 50. Gross sales last year…

A:

Q: nider Industries sells on terms of 2/10, net 35. Total sales for the year are $600,000. Thirty…

A: Days sales outstanding means the average number of days , a customer take , to make payment. This…

Q: Kyoto Joe, Incorporated, sells earnings forecasts for Japanese securities. Its credit terms are…

A: Accounts receivables are part of the current assets of the company. The goods sold on credit are…

Q: Medwig Corporation has a DSO of 36 days. The company averages $8,000 in sales each day (all…

A: DSO means days sales outstanding. It means number of days it takes credit sales to be converted into…

Q: Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38…

A: Cash conversion cycle is defined as the metric, which used to be expressed in time that are measured…

Q: Sixty percent of Jesse's annual sales of P900,000 is on credit. If its year-end receivables turnover…

A: Annual Sales = 900,000 Credit Sales = 60% * Annual Sales = 60% * 900,000 = 540,000 Receivable…

Q: NEKO Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash…

A: Calculation of days of sales outstanding   = 30% x 20 = 6 days    Calculation of credit sales =…

Q: International Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and…

A: Given information: Credit terms 3/10, net 50 Last year gross sales amounted to $5,662,500 Average…

Q: Queen Corp sells on terms of 2/10, n/30. 70% of customers normally avail of the discounts. Annual…

A: The calculation of average accounts receivable has been made as follows:

Q: ABC Corp. has net credit sales of P1,440,000 yearly with credit terms of n/30, which is also the…

A: Formula: Accounts receivable turnover = Net credit sales / Average accounts receivable Average…

Q: nternational Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and…

A: The calculation of gross and discounted sales has been made as follows: Gross Sales per day =Total…

Q: Medwig Corporation has a DSO of 17 days. The company averages $8,500 in sales each day (all…

A: Days sale outstanding(DSO)/Average collection period(ACP) tells a firm on an average time taken by…

Q: Assume that ABC Corporation pays for each purchase three (3) weeks after date of purchase. Maintains…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: ABCD Corporation has credit sales of $10,960,000 and receivables of $1,260,000. Assume there are 365…

A:

Q: McEwan Industries sells on terms of 3/10, net 30. Total salesfor the year are $1,921,000; 40% of the…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The annual sales of a company are $235,000 including sales tax at 17.5%. Half of the sales are on…

A: We have the following information: The annual sales of a company are $235,000 including sales tax…

Q: a. If the balance in accounts receivable at the end of 1991 was $500,000 and $750 million , how long…

A: This can be arrived at by using average collection period (ACP) formula. It measures the average…