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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?

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

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