Accounts receivable. Two methods to monitor accounts receivable are as a percentage of net patient revenues and as days in accounts receivable. What factor can cause the former to be a better measure...

Accounts receivable. Two methods to monitor accounts receivable are as a percentage of net patient revenues and as days in accounts receivable. What factor can cause the former to be a better measure than the latter with regard to collections activities?

Trade credit discount. Compute the approximate annual interest cost of not taking a discount, using each of the following scenarios. What conclusion can be drawn from the calculations?

a. 2/10 net 20.

b. 2/10 net 30.

c. 2/10 net 40.

d. 2/10 net 50.

e. 2/10 net 60.