[alodin]

Thank you really appreciate itit, I will watch it again.

[alodin]

Please let me know where did I go wrong, as the answer in the BPP textbook does not split the Receivables between the fraction of customers who took the discount and those who did not. Thank you

Current Receivables per S.o.F.P 550,000

With discount 197,260
(4,000,000*2/3*14/365)+(4,000,000*1/3*26/365)
Reduction In receivables 352,740

Cost
4,000,000*1%*2/3 26,667

Benefits
Interest savings on overdraft 31,747
352740*9%
Savings on Administrative or Selling 12,000
Reduced Bad Debts 24,000
4,000,000*(3% – 2.4%)
Net Benefits from the Discount 41,080

[alodin]

Thanks

[alodin]

Thankful

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