Question
The accounts receivable turnover rate for Baldwin Corporation is 8, and for Basinger Company is 10. These statistics indicate that: A. Basinger collects its accounts
The accounts receivable turnover rate for Baldwin Corporation is 8, and for Basinger Company is 10. These statistics indicate that: A. Basinger collects its accounts receivable within 10 days on average; Baldwin collects its accounts receivable in 8 days on average. B. Basinger writes off as uncollectible a greater percentage of its accounts receivable than does Baldwin Company. C. Basinger collects its accounts receivable faster than does Baldwin Company. D. Basinger makes on average 10 credit sales annually to each of its customers, while Baldwin makes 8 credit sales to each customer.
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