United Distributors has an investment in trade receivables of £2,750,000.Costs of goods sold
represent 75% of the sales price.Daily credit sales are £118,280.If 30% of United's credit customers
receive a discount by paying within 10 days.The ﬁrm's terms are net 30.How is the other 70% of
customers paying; are they meeting the terms?

Question

Quizplus · Accepted Answer

The Answer of United Distributors has an investment in trade receivables of £2,750,000.Costs of goods sold
represent 75% of the sales price.Daily credit sales are £118,280.If 30% of United's credit customers
receive a discount by paying within 10 days.The ﬁrm's terms are net 30.How is the other 70% of
customers paying; are they meeting the terms?

United Distributors Has an Investment in Trade Receivables of £2,750,000