Bumpting Inc. offers credit terms of 2/10, net 30 If a customer bought $100,000 worth of...
Bumpting Inc. offers credit terms of 2/10, net 30
If a customer bought $100,000 worth of goods and paid the firm within 6 days, how much cash would Bumpting receive?
*95000
*100000
*98000
If the customer paid off the account after 20 days, how much cash would the Bumptings get?
*95000
*100000
*98000
If 20% of Bumptings customers pay within 10 days and the rest take an average of 35 days to pay off their accounts what will be the firm's average collection period?
*30 days
*32 days
*28 days
Homework Answers
If a customer bought $100,000 worth of goods and paid the firm
within 6 days, how much cash would Bumpting receive?
Cash collected = $100000 - $100000 x 2% = $98000, 2% discount is
given since payment is made by customer within 10 days
Answer is c.$98000
If the customer paid off the account after 20 days, how much
cash would the Bumptings get?
Cash collected = $100000, no discount is given since payment is
made after 10 days
Answer is b. $100000
If 20% of Bumptings customers pay within 10 days and the rest
take an average of 35 days to pay off their accounts what will be
the firm's average collection period?
Average Period = 10 x 20% + 35 x 80% = 30 days
Answer is a. 30 days
Add Answer to:
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