A bank is analysing the receivables of Rolly Ltd. in order to identify acceptable collateral for a short term loan. The company's credit policy is 2/10 net 30. The bank lends 75% of accounts where customers are not curre

Bank's Lending Policy Criteria: Customers not currently overdue (i.e., Days of Outstanding ≤ 30 days as per 'net 30' policy). Average Payment Period does not exceed 10 days past the net period (i.e., Average Payment Period ≤ 30 + 10 = 40 days). Analysis of Accounts: Account 70: Days Outstanding (12) ≤ 30. Avg Payment Period (20) ≤ 40. Eligible. Account 90: Days Outstanding (45) > 30. Not Eligible. (Also Avg Payment Period (60) > 40). Account 110: Days Outstanding (22) ≤ 30. Avg Payment Period (24) ≤ 40. Eligible. Account 111: Days Outstanding (9) ≤ 30. Avg Payment Period (10) ≤ 40. Eligible. Account 141: Days Outstanding (50) > 30. Not Eligible. (Also Avg Payment Period (45) > 40). Account 161: Days Outstanding (16) ≤ 30. Avg Payment Period (10) ≤ 40. Eligible. Account 173: Days Outstanding (27) ≤ 30. Avg Payment Period (48) > 40. Not Eligible. Statement Showing Loan Amount on Pledge of Receivables: Account No. Amount (₹) (Col. 2) Allowance for Cash Discount & Returns (10% of Col. 2) (Col. 3) Net Amount (Col. 2 - Col. 3) (Col. 4) Loan Amount @75% of Col. 4 (Col. 5) 70 50,000 5,000 45,000 33,750 110 23,000 2,300 20,700 15,525 111 4,600 460 4,140 3,105 161 58,000 5,800 52,200 39,150 Total Loan Amount 91,530