General Accounting question Mercury Corp.'s sales last year were $395,000, and its year-end receivables were $42,500. Mercury sells on terms that callfor customers to pay 30 days after the purchase, but manydelay payment beyond Day 30. On average, how many dayslate do customers pay?

Days Sales Outstanding (DSO)DSO measures the average number of days it takes for a company to…

Answered: Mercury Corp.'s sales last year were…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Mercury Corp.'s sales last year were $395,000, and its year- end receivables were $42,500. Mercury sells on terms that call for customers to pay 30 days after the purchase, but many delay payment beyond Day 30. On average, how many days late do customers pay?