The Turn It Up Corporation Sells on Credit Terms of Net

question 81

Multiple Choice

The Turn It Up Corporation sells on credit terms of net 30.Its accounts are,on average,6 days past due.Annual credit sales are $7 million.What is the company's balance sheet amount in accounts receivable?

• A)$690,411
• B)$723,333
• C)$851,667
• D)$915,407
• E)$923,593

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Definitions:

Ordering Costs

Expenses associated with placing and receiving orders for goods or services, including administrative costs and transportation.

Statistical Safety Stock

The level of extra inventory a company holds to protect against uncertainties in demand or supply.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points relative to its mean.

Service Level

A measure of the quality and performance of a service, often reflecting the degree to which customer expectations are met.