Kyoto Joe, Incorporated, sells earnings forecasts for Japanese securities. Its credit terms are 3/15, net 60. Based on experience, 40 percent of all customers will take the discount.
a. What is the average collection period for the company? (Use 365 days a year. Do not round intermediate calculations.)
b. If the company sells 1,060 forecasts every month at a price of $1,900 each, what is its average balance sheet amount in accounts receivable? (Use 365 days a year. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
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