The Following Information Is Available for Patterson Company The Accounts Receivable Turnover for 2014 Is
A) 8

question 190

Multiple Choice

The following information is available for Patterson Company: $\begin{array}{lrr}&2014&2013\\\text { Accounts receivable } & \$ 360,000 & \$ 340,000 \\\text { Inventory } & 280,000 & 320,000 \\\text { Net credit sales } & 3,000,000 & 2,600,000 \\\text { Cost of goods sold } & 1,500,000 & 840,000 \\\text { Net income } & 300,000 & 170,000\end{array}$ The accounts receivable turnover for 2014 is

• A) 8.3 times.
• B) 4.3 times.
• C) 8.6 times.
• D) 7.6 times.

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Definitions:

Commercial Impracticability

A legal defense that excuses the performance of a contract due to unforeseen and uncontrollable circumstances that make fulfillment excessively burdensome or impossible.

Financially Unsound Contract

A contract deemed as high-risk due to the financial instability or inability of one or more parties to fulfill their obligations.

Relieved from Performance

A legal condition where a party is released from fulfilling their obligations under a contract due to unforeseen circumstances.

Perfect Tender Rule

The perfect tender rule is a principle in sales law that allows a buyer to reject goods delivered by a seller if they do not meet all contract specifications.