The Green Hornet offers credit terms of 2/5, net 20. Based on experience, 93 percent of all customers will take the discount. The firm sells 487 units each month at a price of $649 each. What is the average book value of accounts receivable? Assume a 365-day year.
A) $60,274
B) $68,272
C) $62,866
D) $67,012
E) $65,387

Question

Quizplus · Accepted Answer

The Answer of The Green Hornet offers credit terms of 2/5, net 20. Based on experience, 93 percent of all customers will take the discount. The firm sells 487 units each month at a price of $649 each. What is the average book value of accounts receivable? Assume a 365-day year.
A) $60,274
B) $68,272
C) $62,866
D) $67,012
E) $65,387

The Green Hornet Offers Credit Terms of 2/5, Net 20