Signed a contract with a good customer to ship

Assignment Help Accounting Basics

Reference no: EM131105969

Your company has signed a contract with a good customer to ship the customer an order no later than 20 days from now. The contract indicates that the customer will accept the order even if it is late, but instead of paying the full price of $10,000, it will be allowed to pay 10% less, $9000, due to lateness. You estimate that it will take anywhere from 17 to 22 days to ship the order, and each of these is equally likely. You believe you are in good shape, reasoning that the expected days to ship is the average of 17 through 22, or 19.5 days. Because this is less than 20, you will get your full $10,000. What is wrong with your reasoning?

Reference no: EM131105969

Questions Cloud

The accounts receivable balance : (Cash budget) The Accounts Receivable balance at October 1, 2000, for Skyscraper Architects was $606,900. Of that balance, $450,000 represents remaining Accounts Receivable from September billings.

Data and actual evidence suggest : From your point of view, does it make sense in light of standard macroeconomic thinking? What do data and actual evidence suggest?

What is social disorganization : How does social disorganization relate to organized crime and its evolution? How well does social disorganization meet the criteria for organized crime and its various relationships? Why? Explain your answer.

Calculate the maximum compression x of the spring : Assume that x is small so that the position of the rod when the spring is compressed is essentially horizontal.

Signed a contract with a good customer to ship : Your company has signed a contract with a good customer to ship the customer an order no later than 20 days from now. The contract indicates that the customer will accept the order even if it is late, but instead of paying the full price of $10,00..

Pros and cons of open standards : How do open standards affect market development? Be sure to discuss the pros and cons of open standards. Give a real world example as part of your discussion.

Provide an example of any one provision in us constitution : Definition (quote from the Textbook, with page number, OR quote from another permitted source -- i.e. an online law dictionary, with proper source citation ) and Explanation in your own words.

Relevant outlay on money in terms of buying : Money is a limited resource. Basing your economic perspective on money, give a relevant outlay on money in terms of buying.

Hiring a geologist to perform some seismic tests : In a classic oil-drilling example, you are trying to decide whether to drill for oil on a field that might or might not contain any oil. Before making this decision, you have the option of hiring a geologist to perform some seismic tests and then ..

User Account

All Pages