A Firm's Credit Terms Specify "1/10 Net 30" and the Accounts

question 111

Multiple Choice

A firm's credit terms specify "1/10 net 30" and the accounts receivable days outstanding is 32 days.Which of the following can be concluded on the basis of this information?

• A)Most customers pay on time.
• B)The average customer pays two days late.
• C)All customers have paid within 32 days of purchase.
• D)All customers pay late.
• E)No customers have paid within 32 days of purchase.

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