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    Accounts Receivable Average & Cost of Trade Credit

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    Medwig Corporation has a DSO of 17 days. The company averages $3,500 in credit sales each day. What is the company's average accounts receivables?

    What is the nominal and effective cost of trade credit under the credit terms of 3/15, net 30?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:09 am ad1c9bdddf
    https://brainmass.com/business/auditing/accounts-receivable-average-cost-trade-credit-322568

    Solution Summary

    This solution assists with determining Medwig's average accounts receivables and determines the nominal and effective cost of trade credit.

    $2.19

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