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Effective September 1, a company initiates seasonal dating as a component of its credit policy, allowing wholesale customers to make purchases early but not requiring payment until the retail selling season begins. Sales occur as follows:
Date of sale . . . Quantity sold
September 1 . . . 300 units
October 1 . . . . 100 units
November 1 . . . . 100 units
December 1 . . . . 150 units
January 1 . . . . .50 units
Each unit has a selling price of $10, regardless of the date of sale.
The terms of sale are 2/10 net 30, January 1 dating.
All sales are on credit.
All customers take the discount and abide by the terms of the discount policy.
All customers take advantage of the new seasonal dating policy.
The peak selling season for all customers is mid- November to late December.
For sales after the initiation of the seasonal dating policy on September 1, total collections on or before January 11 will be