A Company Had $12,000 in Accounts Receivable and $320,000 in Net

question 191

True/False

A company had $12,000 in accounts receivable and $320,000 in net sales for the current period.Its days' sales uncollected is equal to 13.7 days.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Prepaid Insurance

Payments made in advance for insurance services, which is recorded as an asset on the balance sheet and expensed over the period the insurance coverage is applicable.

Adjusting Journal Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Insurance Premium

The amount of money an individual or business pays for an insurance policy, which provides financial protection against losses.