ABC Co Has an Average Collection Period of 90 Days for for Its

question 90

Multiple Choice

ABC Co. has an average collection period of 90 days for its accounts receivable. If total credit sales for the year were $6,000,000, what is the balance in accounts receivable at year-end? Assume a 360-day calendar year.

• A) $150,000
• B) $2,250,000
• C) $1,500,000
• D) $40,000

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Definitions:

Multinational Corporation

A company that operates in multiple countries, managing production or delivering services in more than one country beyond its home country.

International Operations

Business activities that are conducted across national borders.

Foreign Country

A nation or territory outside one's own country, subject to a different legal and cultural system.

Parasitoid Wasps

Insects that lay their eggs in or on the bodies of other insects; the larvae then feed on the host, typically leading to its death.