Kyoto Joe Inc. sells earnings forecasts for Japanese securities. Its credit terms are 3/15, net...
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Kyoto Joe Inc. sells earnings forecasts for Japanese securities. Its credit terms are 3/15, net 60. Based on experience, 40% of all customers will take the discount.
a. What is the average collection period for Kyoto Joe? (Use 365 days a year.)
Average collection period days
b. If Kyoto Joe sells 1,060 forecasts every month at a price of $1,900 each, what is its average balance sheet amount in accounts receivable? Assume 365 days per year. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
Average balance $
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