Provide correct answer this question general accounting A firm sells on terms of 3/10, net 30. Total credit sales for theyear are $912,500. Forty percent of customers pay on the10th day and take a discount; the rest pay, on average, 40days after purchase. What is the firm's ACP?A. 40 daysB. 30 daysC. 28 daysD. 22 days

Step 1: Define ACP and DSOACP stands for average collection period or average credit period. It…

Answered: A firm sells on terms of 3/10, net 30.…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6P

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A firm sells on terms of 3/10, net 30. Total credit sales for the year are $912,500. Forty percent of customers pay on the 10th day and take a discount; the rest pay, on average, 40 days after purchase. What is the firm's ACP? A. 40 days B. 30 days C. 28 days D. 22 days