If a Firm Starts the Year with Receivables of $80,000

question 50

Multiple Choice

If a firm starts the year with receivables of $80,000 and produces sales for the year of $300,000,what is its average collection period?

• A) 3.75 days.
• B) 97.3 days.
• C) 52 days.
• D) 77.9 days

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Definitions:

Inventory ID Code

A unique identifier, often in the form of a barcode or RFID tag, used to track and manage individual items in an inventory.

Warehouse

A large building where goods are stored before they are distributed, sold, or used.

Product Item

A specific version of a product that is distinct in its offered features or characteristics.

Valentine's Day

An annual holiday celebrated on February 14th, known for expressing love and affection between intimate companions.