Sales are collected as follows:
In the month of Sales: 39%In the next month: 33%After 2 months: 10%Remainder is considered as bad debt and is not collected.
Calculate the cash collection for June.
14 ABC Company has an average collection period of 39 days and factors all of its receivables immediately at a 1.5 percent discount. Assume all accounts are collected in full. What is the firm’s effective cost of borrowing?