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Question: Landry Marine is a national distributor of


Landry Marine is a national distributor of boat parts and supplies. Landry Marine’s customers include the following categories of stores: locally owned, small regional chains, large regional chains, and national chains. Landry Marine’s chief executive officer (CEO), Gene O’Neil, has requested your assistance in helping him further understand the company’s credit sales, including collectability of accounts receivable and returns by customer type. Specifically, Gene O’Neil has asked you to answer the following questions based on the dataset provided:
1. What are the average days’ sales in receivables by customer type? Assume that Landry Marine’s credit terms are n/30 for all customers.
2. What are write-offs by customer type, in dollars and as a percent of credit sales?
3. What are returns as a percent of credit sales by customer type?
4. How could the CEO, Gene O’Neil, use the preceding analyses in managing Landry Marine?
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