Kay's House of Sound Sells 520 Musical Instruments a Year

question 42

Multiple Choice

Kay's House of Sound sells 520 musical instruments a year at an average price per instrument of $580.All sales are credit sales with terms of 2/10,net 25.Hogan's has found that 78 percent of its customers take advantage of the discounted price.What is the amount of the firm's average accounts receivable?

• A)$9,560
• B)$10,990
• C)$11,280
• D)$12,440
• E)$12,620

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Definitions:

Assembly Line Workers

Employees who work on a manufacturing process where a product is assembled step by step in a sequential manner.

Support Staff

Employees who provide administrative or technical services to aid the primary functions of an organization, institution, or industry.

Profit-Sharing Plan

A retirement plan where companies share a portion of their profits with employees, which is allocated to individual employee retirement accounts.

Job Classification

The categorization of jobs or positions within an organization based on duties, responsibilities, and pay scales.