If 20% of the Customers Pay on Day 10 and 80

question 32

Multiple Choice

If 20% of the customers pay on day 10 and 80% pay on day 30,the average collection period is:

• A) 10 days.
• B) 15 days.
• C) 22.5 days.
• D) 24 days.
• E) 26 days.

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Definitions:

Unaddressed Envelope

An envelope lacking a specific destination address, often used for general mail distribution or marketing purposes.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Foreclose

The legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Consideration

The value (such as money, goods, or services) that is exchanged between parties in a contract.