Jaxon Markets Currently Has Credit Terms of Net 30,an Average

question 32

Multiple Choice

Jaxon Markets currently has credit terms of net 30,an average collection period of 29 days,and average receivables of $211,410.The firm estimates that if it offered terms of 2/10,net 30 that 45 percent of its customers would pay on Day 10 with the remainder paying on average in 32 days.How much cash could the company free up from its accounts receivables if it switched its credit policy?

• A)$38,762
• B)$50,301
• C)$64,219
• D)$58,336
• E)$65,009

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, which develops in infancy.

Operations

In cognitive psychology, it refers to mental actions that allow individuals to mentally manipulate objects and solve problems.

Count

To determine the total number of items in a set by listing them one by one.

Primary Circular Reaction

A component of sensorimotor development in infants, involving repetitive actions focused on the baby's own body that are pleasurable and serve as a means of learning about the world.