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:

Price Level

A metric that represents the median of present prices for all types of goods and services in the economy.

Future Expectations

The anticipations or outlook that consumers and businesses have about economic conditions that affect their spending and investment decisions.

Deferring Consumption

The act of postponing spending money on consumption goods to save or invest for future use.

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, paid over a specific period.