Fogel's Pumps offers its customers credit terms of 2/10, net 30, while Larry's Pumps offers terms of 2/10, net 45 days. The aging schedules for the two companies' receivables are shown below: Which company has the higher percentage of overdue accounts, and what is their percentage of overdue accounts?
A) Larry's: 50% overdue.
B) Fogel's: 20% overdue.
C) Fogel's: 30% overdue.
D) Larry's: 40% overdue.

Question

Fogel's Pumps offers its customers credit terms of 2/10, net 30, while Larry's Pumps offers terms of 2/10, net 45 days. The aging schedules for the two companies' receivables are shown below:  Which company has the higher percentage of overdue accounts, and what is their percentage of overdue accounts?
A) Larry's: 50% overdue. 
B) Fogel's: 20% overdue. 
C) Fogel's: 30% overdue. 
D) Larry's: 40% overdue.

Quizplus · Accepted Answer

The Answer of Fogel's Pumps offers its customers credit terms of 2/10, net 30, while Larry's Pumps offers terms of 2/10, net 45 days. The aging schedules for the two companies' receivables are shown below:  Which company has the higher percentage of overdue accounts, and what is their percentage of overdue accounts?
A) Larry's: 50% overdue. 
B) Fogel's: 20% overdue. 
C) Fogel's: 30% overdue. 
D) Larry's: 40% overdue.

Fogel's Pumps Offers Its Customers Credit Terms of 2/10, Net