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    Receivables

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    The Gwynn Company's total sales for the year were $4,250,000. It sells on terms of 2/15, net 30. Thirty percent of its customers pay on the fifteenth day; the other 70 percent pay, on average, in 52 days.
    a) What are the firm's day's sales outstanding?
    b) What is the firm's average amount of receivables?

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    Solution Preview

    The Gwynn Company's total sales for the year were $4,250,000. It sells on terms of 2/15, net 30. Thirty percent of its customers pay on the fifteenth day; the other 70 percent pay, on average, in 52 days.
    a) What are the firm's ...

    Solution Summary

    The solution explains how to calculate day's sales outstanding and average amount of receivables

    $2.19