any help? thank you

Question

Diazstar corporation sells on terms of 2/10, n/30. 70% of costumers normally avail of the discounts. annual sales are $900,000. 80% of which is made on credit. Cost is approximately 75% of sales.

required:
1. average balance in accounts receivable.
2. average investment in accounts receivable.

Answer 1

Do you know what 2/10 n/30 means?

It means if you pay before 10days, you get 2% off, but you must pay all before 30days.

Answer 2

@anonymous: yey now, i know what it means!thanks.. so..how to compute for average balance in accounts receivable and
average investment in accounts receivable?

you know..i really need those... coz my exam is tomorow and my teacher doesnt teach!sigh~...