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Net Period of Delta Distributors

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21. Delta Distributors has an investment in accounts receivable of $2,750,000. Daily credit sales are $118,280. If 30% of Delta's credit customers receive a discount by paying within 10 days and the remainder of Delta's customers pay in 40 days, what is the net period that Delta maintains?

A. 19 days
B. 31 days
C. 37 days
D. 40 days
E. None of the above.

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The response provides the steps to compute the net period.

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Delta Distributors has an investment in accounts receivable of $2,750,000. Daily credit sales are ...

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