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NEW QUESTION: 1
Clauson Inc. grants credit terms of 1/15, net 30 and projects gross sales for next year of $2,000,000. The
credit manager estimates that 40 percent of their customers pay on the discount date, 40 percent on the
net due date, and 20 percent pay 15 days after the net due date. Assuming uniform sales and a 360-day
year, what is the projected days sales outstanding (rounded to the nearest whole day)?
A. 30 days.
B. 24 days.
C. 20 days.
D. 27 days.
Answer: D
Explanation:
Choice "c" is correct. 27 days projected days sales outstanding.


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