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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › chapter 5 ex2-change of policy
with a 1% settlement disc, why not mean that avg receivables are
$20m(0.99*18/54 + 36/54)=$2 949 041 seeing that those that pay within the 30 day mark reduce the absolute trade receivables figure?
PS: please indulge me my perhaps stupid questions.
That is fine.
As I do say in the lecture, the examiner accepts it with or without the discount (he sometimes subtracts the discount in his answers, and sometimes he doesn’t, but either gets full marks).
The effect on the final answer is always going to be very small.