Question
Gina's wholesale musical instrument business was open seven days a week in 2013. Business was good. She had credit sales that averaged $68,500 per month
Gina's wholesale musical instrument business was open seven days a week in 2013. Business was good. She had credit sales that averaged $68,500 per month during the last year. Miscellaneous cash sales amounted to another $2,200 per month. She had $159,895 in accounts receivable at 12/31/13. Accounts receivable had increased by almost 20% over the year, from a balance of $133,413 at the beginning of the year. Despite the steady increase, receivables over 30 days old dropped from $31,650 at the beginning of the year to $21,200 at 12/31/13. She wrote off $7,250 as bad debts during the year. Gina's days sales outstanding (DSO) at year-end was:
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