Answer:
9 average days late
Explanation:
Days Sales Outstanding - Allowed credit period = average days late
Days Sales Outstanding
[tex]\frac{Account \: Receivable}{Sales} \times 365 = DSO[/tex]
[tex]\frac{42,500}{395,000} \times 365 = DSO[/tex]
DSO = 38.81012658 = 39 days
Days Sales Outstanding - Allowed credit period = average days late
39 - 30 = 9 average days late