Syed's Industries Has Accounts Receivable of $700, Inventory of $1,200

question 320

Multiple Choice

Syed's Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of goods sold of $3,400. How long does it take Syed's to both sell its inventory and then collect the payment on the sale?

• A) 128 days
• B) 146 days
• C) 163 days
• D) 190 days
• E) 211 days

---

Definitions:

Prepaid Rent

This is the amount paid for rent in advance of the rental period to which it relates, recorded as an asset on the balance sheet until the period to which it applies.

Loss on Sale of Land

The financial loss recognized when land is sold for less than its purchase price or carrying value on the books.

Sales Journal

A financial journal used to record the sales of goods or services on credit.

Customer Purchase

A transaction where a customer acquires goods or services from a business.