Explore BrainMass

Explore BrainMass

    Average investment in accounts receivable

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A firm offers terms of 2/15, net 30. Currently, two-thirdsof all customers take advantage of the trade discount; the remainder pay bills at the due date.

    .. What will be the firm's typical value for its accounts receivable period?

    .. What is the average investment in accounts receivable if annual sales are $20 million?

    .. What would likely happen to the firm's accounts receivable period if it changed its terms to 3/15, net 30?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:44 pm ad1c9bdddf
    https://brainmass.com/business/auditing/average-investment-in-accounts-receivable-72656

    Attachments

    Solution Preview

    A firm offers terms of 2/15, net 30. Currently, two-thirds of all customers take advantage of the trade discount; ...

    Solution Summary

    This provides the steps to calculate the average investment in accounts receivable

    $2.19

    ADVERTISEMENT