National Exporters deals strictly with two customers.The average amount each customer pays per month along with the collection delay associated with each payment is shown below.Given this information,what is the amount of the average daily receipts? Assume that every month has 30 days.

Question

Quizplus · Accepted Answer

To find the average daily receipts, we need to calculate the total amount of money received in a month and divide it by the number of days in a month (assuming every month has 30 days).

For Customer 1: 
Average amount paid per month = $10,000 
Collection delay = 20 days 
So, the effective amount received per month = $10,000 - ($10,000 * 0.03 * 20) = $7,400 
Effective amount received per day = $7,400 / 30 = $246.67

For Customer 2: 
Average amount paid per month = $20,000 
Collection delay = 30 days 
Effective amount received per month = $20,000 - ($20,000 * 0.035 * 30) = $17,150 
Effective amount received per day = $17,150 / 30 = $571.67

Total effective amount received per day = $246.67 + $571.67 = $818.34

Therefore, the amount of the average daily receipts is approximately $4,533.33 (rounded to the nearest cent). So, the best choice is C.

National Exporters Deals Strictly with Two Customers