Grapp Company Had $130,000 in Sales on Account Last Year

question 154

Multiple Choice

Grapp Company had $130,000 in sales on account last year.The beginning accounts receivablebalance was $18,000,and the ending accounts receivable balance was $16,000.The company's average collection period (age of receivables) was closest to which of the following? Do not round intermediate calculations.

• A) 44.92 days.
• B) 47.73 days.
• C) 50.54 days.
• D) 95.46 days.

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Definitions:

Dissolution

refers to the process of legally dissolving a company or partnership, ending its existence and distributing its assets.

Limited Liability Company

An organizational setup that blends the limited liability perks of a corporation with the straightforward taxation process of partnerships or sole proprietorships.

Liability Limits

The maximum amount of coverage an insurance policy provides, representing the most an insurance company will pay for damages or losses.

Misconduct

Improper or unlawful behavior by a person in a position of authority or trust.