Summer Fashions Had a Balance in the Accounts Receivable Account

question 66

Multiple Choice

Summer Fashions had a balance in the Accounts Receivable account of $660,000 at the beginning of the year and a balance of $720,000 at the end of the year.Net credit sales during the year were $5,350,000.The average collection period of the receivables was

• A)45 days.
• B)47 days.
• C)49 days.
• D)93 days.

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Definitions:

Breach

The violation or breaking of a law, duty, or other form of agreement.

Goods Not Yet Delivered

Refers to items that have been sold or ordered but have not been physically moved or handed over to the buyer or recipient.

Seller and Lessor

Terms referring to parties in transactions where goods are sold (seller) or property is leased (lessor) to another party.

Specific Performance

A legal remedy in contract law requiring the breaching party to fulfill the exact terms of the contract, rather than merely compensating the aggrieved party with damages.