Find the Exact Time of a Loan Made on July

question 6

Multiple Choice

Find the exact time of a loan made on July 6 and due on January 26.

• A) 202 days
• B) 185 days
• C) 197 days
• D) 204 days

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Definitions:

Prompt Payment

The settlement of a bill or invoice on or before its due date.

Softball Equipment

The gear and accessories required for playing softball, such as bats, gloves, balls, and protective gear.

Net Accounts Receivable

The amount of money owed to a company by its customers for goods or services provided, after accounting for any allowances for doubtful accounts.

Allowance Method

An accounting technique used to estimate bad debts and adjust accounts receivable to reflect only receivables expected to be collected.