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Account receivables

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I have spent an absorpant amount of time trying to solve this single homework problem. It's easy, which is killing me.

Essence of Skunk Fragrances, Ltd., sells 4,000 units of its perfume collection each year at a price per unit of $400. All sales are on credit with terms of 1/10, net 30. The discount is taken by 40 percent of the customers. What is the amount of the company's accounts recievable?

This question comes out of the "Essentials of Corporate Finance" edition 6, published by McGraw, Hill, Irwin. Authored by Ross, Westerfield, and Jordan.

BTW the answer is 96,438.16. I want to know HOW to solve the problem, not just the answer, please.

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Solution Summary

The solution explains how to calculate the amount of account receivables when information about sales, price per unit and credit terms is given.

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