Essence of skunk fragrances ltd sells 7400 units of its, Ask an Expert

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Essence of Skunk Fragrances, Ltd., sells 7,400 units of its perfume collection each year at a price per unit of $690. All sales are on credit with terms of 1/15, net 60. The discount is taken by 55 percent of the customers.

Required:

Question 1: Calculate the average collection period.

Question 2: What is the receivables turnover?

Question 3: What is the amount of the company's average receivable?

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162598

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