Morrison Manufacturing sells on terms of 3/10, net 45. Total annual sales are $1,200,000. 35% of the customers pay on the 10th day and take discounts, while the remainder pay, on average, 55 days after their purchases. All sales and receivables are recorded net of discounts, regardless of whether or not discounts are actually taken. What is the firm's accounts receivable balance, based on a 365-day year?

Morrison Manufacturing sells on terms of 3/10, net 45. Total annual sales are $1,200,000. 35% of the customers pay on the 10th day and take discounts, while the remainder pay, on average, 55 days after their purchases. All sales and receivables are recorded net of discounts, regardless of whether or not discounts are actually taken. What is the firm's accounts receivable balance, based on a 365-day year?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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