Question
During the current accounting period, revenue from credit sales is $861,000. The accounts receivable balance is $53,380 at the beginning of the period and $71,200
During the current accounting period, revenue from credit sales is $861,000. The accounts receivable balance is $53,380 at the beginning of the period and $71,200 at the end of the period. Which of the following statements is correct?
On average, it takes 13.8 days to collect payment from credit customers.
The receivables turnover ratio is 13.8.
On average, the company sells its inventory every 26.51 days.
The receivables turnover ratio is 26.5.
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Income Tax Fundamentals 2017
Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller
35th Edition
1305872738, 978-1337669689, 1337669687, 978-0357690796, 978-1305872738
