Problemessence of skunk fragrances ltd sells 7400 units of, Ask an Expert

Accounting

Problem:

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: Please provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170916

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