The Following Data Comes from Beaumont Company's Financial Statements for the Year

question 61

Multiple Choice

The following data comes from Beaumont Company's financial statements for the year ended December 31, 2014.(Assume that the balance sheet amounts represent both average and ending balances.) $$\begin{array} { l r } \text { Cash } & \$ 5,000 \\\text { Accounts receivable } & 75,000 \\\text { Inventory } & 32,500 \\\text { Sales } & 525,000 \\\text { Cost of goods sold } & 315,000 \\\text { Net income } & 42,500\end{array}$$ What are Beaumont's average collection period of accounts receivable and their average number of inventory days on hand closest to? $\begin{array}{ll}\text { Accounts } & \text { Inventory } \\\text { receivable } & \text { days on } \\\text { collection } & \text { hand }\\\text { A) } 52 \text { days } & 38 \text { days } \\\text { B) } 52 \text { days } & 23 \text { days } \\\text { C) } 87 \text { days } & 38 \text { days } \\\text { D) } 87 \text { days } & 23 \text { days }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Voucher Register

A journal or ledger used to record vouchers and their corresponding financial transactions in the accounting cycle.

General Journal

A primary accounting record where financial transactions are entered before being posted to specific accounts in the general ledger.

Sundry Column

A column used in various accounting journals and ledgers to record miscellaneous transactions that do not fit in the specific columns.

Unpaid Voucher File

A record or file keeping track of vouchers that have been issued but not yet settled by payment.