Problem

(L.OBJ. 8) Collection period for receivables [10—15 min] Modern Media Sign Company sell...

(L.OBJ. 8) Collection period for receivables [10—15 min]

Modern Media Sign Company sells on account. Recently, Modern reported the following figures:

Requirements

1. Compute Modern’s average collection period on receivables during 2012.

2. Suppose Modern’s normal credit terms for a sale on account are "2/10 net 30." How well does Modern’s collection period compare to the company’s credit terms? Is this good or bad for Modern?

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Textbook Solutions and Answers Search

Solutions For Problems in Chapter 8

42CP
43PS

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