Get average receivables of discount customers

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Reference no: EM13731358

Sell on term 1/10, net 30. Gross sales last year $4,821,500 and accounts receivable averaged $434,500. Customers paid on tenth day and took discount. What are the nominal and effective cost of trade credit to non discount customers ( hint: calculate sales /day based on a 365-day year: then get average receivables of discount customers: then find the DSO for the non discount customers) nominal and effective cost?

Reference no: EM13731358

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