[Jsn3004]

Sorry if I shouldn’t be posting this question on here, I figured I don’t want to confuse people on the BEC Study Group with a question that might be worded wrong.

Jackson Distributors sells to retail stores on credit terms of 2/10, net 30. Daily sales average 150 units at a price of $300 each. Assuming that all sales are on credit and 60% of customers take the discount and pay on Day 10 while the rest of the customers pay on Day 30, the amount of Jackson’s accounts receivable is:

A.
$1,350,000.

B.
$990,000.

C.
$900,000.

D.
$810,000.

The answer is D. Am I missing something here?

For the answer to be D, wouldn’t the problem have to ask, “What is the amount of Jackson’s A/R that is paid within the discount period”? If they don’t say that, how are you supposed to know what you are looking for? For all I know I might be so tired that i’m missing something that is right in my face.

FAR: Pass
BEC: Pass

[Anonymous]

$810,000 is 60% of the monthly sales, which is the amount of people who pay within the discount. I agree this questions i super confusing and worded terribly…

[Author]

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