Accounts Receivable Turnover

All of the following statements are true for Garrison Company, who has an accounts receivable turnover rate of 10, except:

Select one:

a. Garrison writes off accounts receivables as uncollectible if they are more than 36.5 days old.

b. Garrisons accounts receivable indicate greater liquidity than those of a business whose accounts receivable turnover rate is 4.

c. Garrison may have less liberal credit terms than a company with an accounts receivable turnover rate of 5.

d. Using a 365 day year, Garrison waits approximately 36.5 days to make collections of its credit sales.