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Problem 1: Pepito Company sells on terms of 3/10, net 30. Gross sales for the year are P1,200,000 AND THE COLLECTION DEPARTMENT ESTIMATES THAT 30 PERCENT OF THE CUSTOMERS PAY On the tenth day and take discounts; 40 percent pay on the thirtieth day; and the remaining 30 percent pay, on average, 40 days after the purchase. Assume 360 days per year. What is the average collection period?
a. 20 daysb. 27 daysc. 13 daysd. 10 days
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