Delta PDA Distributors has an investment in accounts receivable of $2,750,000. Daily credit sales are $118,280....
Delta PDA 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?
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The given answer is A. Please tell me why.
(There is a possibility for the answer to be wrong)
Homework Answers
A. 31 days
Net period = (0.30 × 10 days) + (0.70 × 40 days)
Net period = 3 days + 28 days
Net period = 31 days
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Delta PDA Distributors has an investment in accounts receivable
of $2,750,000. Daily credit sales are $118,280....
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