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

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

United Distributors Has an Investment in Accounts Receivable of $2,750,000