1/10 90 is correct in this way the account receivable will be more so B IS CORRECT
C is not correct 2/10 more discount for cash payment so probably the amount receivable will be lesser than the option B
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NISHAD CHENDRATH BHASKARAN
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Original Message:
Sent: 11-19-2022 01:43 PM
From: PRAGATI VERMA
Subject: Query in this question.
Hello Folks!
Can anyone pls explain why option 'b' will be the answer to this question?
A company currently does not offer trade credit and requires cash payment on delivery. If it changes this policy and begins to offer trade credit, which terms of sale would be expected to cause the largest increase in accounts receivable? a. 1/10 net 30. b. 1/10 net 90. c. 2/10 net 90. d. 2/10 net 30.