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Essence of Skunk Fragrances, Ltd., sells 5,600 units of its perfume collection e

ID: 2763309 • Letter: E

Question

Essence of Skunk Fragrances, Ltd., sells 5,600 units of its perfume collection each year at a price per unit of $386. All sales are on credit with terms of 1/25, net 60. The discount is taken by 40 percent of the customers. (Enter your answer as directed, but do not round intermediate calculations.)

What is the amount of the company’s accounts receivable? (Round your answer to 2 decimal places (e.g., 32.16).)

Essence of Skunk Fragrances, Ltd., sells 5,600 units of its perfume collection each year at a price per unit of $386. All sales are on credit with terms of 1/25, net 60. The discount is taken by 40 percent of the customers. (Enter your answer as directed, but do not round intermediate calculations.)

Requirement 1:

What is the amount of the company’s accounts receivable? (Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

company’s accounts receivable =

60% of Cutomers on credit 5600*386*60% =1296960
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