Use the Following Information for the Question(s)below

question 14

Multiple Choice

Use the following information for the question(s) below.
Wyatt Oil has the following accounts on its books: Wyatt extends credit on terms of 1/15,net 30.
-The percentage of Wyatt's receivables that are still eligible to take the discount is closest to:

• A)20.1%.
• B)32.1%.
• C)38.3%.
• D)42.2%.

---

Definitions:

Straight-Line Method

A method of calculating depreciation of an asset by evenly distributing its cost over the useful life of the asset.

Scrap Value

The estimated resale value of an asset at the end of its useful life, typically considered as salvage value.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation rate, reducing the value of an asset more quickly in its early years.

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life, typically a minimal amount reflecting its residual value.