Delta Distributors Has an Investment in Accounts Receivable of $3,000,000

question 4

Multiple Choice

Delta Distributors has an investment in accounts receivable of $3,000,000. Daily credit sales are $120,000. If 30% of Delta's credit customers receive a discount by paying within 10 days and the remainder of Delta's customers pay in 40 days,what is the net period that Delta maintains? (Round up to the next day.)

• A) 21 days
• B) 37 days
• C) 39 days
• D) 45 days
• E) None of these.

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Definitions:

Example

A specific instance or illustration used to clarify a point, demonstrate a proposition, or provide a model for understanding complex ideas.

Variable Reinforcements

A reinforcement schedule in which rewards are given out at unpredictable intervals, which can lead to more consistent patterns of behavior.

Fixed Schedules

Time management systems where tasks, activities, or work shifts are planned at specific, unchanging times.

Extinguish

To put out a fire or light, or in psychological terms, to diminish a conditioned response by removing the stimulus that elicited it originally.