Tomlin Ltd's Accounts Receivable for Year Ended 31 December 2019

question 27

Multiple Choice

Tomlin Ltd's accounts receivable for year ended 31 December 2019 was $200 000. The number of days in receivables was 146 days. What were the credit sales for the year?

• A) $80 000
• B) $300 000
• C) $500 000
• D) This cannot be determined from the information provided

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Definitions:

Warranty Expense

Costs associated with the commitment to repair or replace a product if it fails within a specified period.

Warranty Repairs

Services offered to repair or replace products free of charge that have been sold with a guarantee promising repair if necessary within a certain period.

Income Statement

A financial document summarizing a company's revenues, expenses, and profits over a specific period, typically a quarter or year.

Sales Units

The number of units of a product that have been sold during a specific period.