Max company has annual sales of $10 million and an average collection periodof 40 days (turnover). In accordance with the firms creditterms of net 30, this period is divided into 32 days until the customers place theirpayments in the mail (not everyone pays within 30 days) and 8 days to receive,process, and collect payments once they are mailed. Max is considering initi-ating a cash discount by changing its credit terms from net 30 to 2/10 net 30.The firm expects this change to
Answers
Answered by
0
Max company has annual sales of $10 million and an average collection periodof 40 days (turnover). In accordance with the firms creditterms of net 30, this period is divided into 32 days until the customers place theirpayments in the mail (not everyone pays within 30 days) and 8 days to receive,process, and collect payments once they are mailed. Max is considering initi-ating a cash discount by changing its credit terms from net 30 to 2/10 net 30.The firm expects this change to
Answered by
0
Explanation:
Google can help you better
Similar questions