Hayes Company Had an Average Age of Accounts Receivable of 25

question 29

Multiple Choice

Hayes Company had an average age of accounts receivable of 25 days and net credit sales of $31,000. Assume a 365-day year. What was the amount of the average net receivables?

• A) $1,152
• B) $2,123
• C) $4,000
• D) $5,760

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Definitions:

Commercial Law

The branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.

Contract Law

The body of law that governs the creation, enforcement, and termination of contracts between parties.

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by the party to be charged in order to be enforceable.