If a Buyer Is Offered the Terms of Sale of "3/10,net

question 181

True/False

If a buyer is offered the terms of sale of "3/10,net 30" this means that the buyer can receive a 10 percent discount by making full payment within 3 days of the billing date.

Learn the most effective methods for debt collection after initial contact.

Understand the role and limitations of outsourced billing services in statement management.

Grasp the integrations and uses of practice management software with other systems for account management.

Learn about compliance and ethical considerations in billing and collections, including handling of credit balances and disclosures required by regulations like the Truth in Lending Act and the Fair Debt Collection Practices Act.

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Definitions:

Transit Float

The time difference between when a payment is made and when it is available in the recipient's account.

Processing Float

The time delay between when a check is written and when it is actually deducted from the payer's account, often utilized in managing company cash flows.

Cash Balances

Cash balances refer to the amount of currency, coins, and balances in checking and savings accounts that a company holds at any given time.

Pledging Agreement

A contract in which a borrower pledges an asset as collateral for a loan, ensuring the lender can seize the asset if the loan is not repaid.