Data from Dunshee Corporation's Most Recent Balance Sheet Appear Below

question 112

Multiple Choice

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The average collection period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) 1.1 days
• B) 0.9 days
• C) 84.3 days
• D) 87.3 days

---

Definitions:

Continuing Operations

Parts of a business expected to continue operating and contributing to revenue over the long term, as opposed to discontinued operations.

Carrying Amount

The net value of an asset or liability on a company's balance sheet, determined by subtracting its accumulated depreciation or amortization from its original cost.

Convertible

A security, often bonds or preferred shares, that can be converted into a specified number of another form, commonly shares of the issuing company's common stock.

Discount On Bonds Payable

The difference by which a bond's selling price is less than its face value, which effectively increases the interest yield for investors.