Abbot Safe & Lock
the Following Information Was Obtained from the Company's

question 100

Multiple Choice

Abbot Safe & Lock
The following information was obtained from the company's records for Year 1:
$\begin{array}{lr}\text { Credit sales during the year } & \$ 3,200,000 \\\text { Accounts receivable-December 31, Year 1 } & 325,000 \\\text { Allowance for doubtful accounts-December 31, Year 1 } & 35,000 \\\text { Bad debt expense for the year } & 20,000\end{array}$

-Refer to the figure Art Shoes.How much interest revenue will the company recognize for the year ended December 31,Year 1?

• A) $0
• B) $2,250
• C) $4,500
• D) $9,000

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Definitions:

Common-Size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison.

Comprehensive Income

The change in equity of a business enterprise during a period from transactions and other events from non-owner sources. It includes all forms of earnings and gains or losses.

Accounts Payable Turnover

A financial metric that measures the rate at which a company pays off its suppliers.

Days' Sales

A financial metric that measures the average time it takes for a company to turn its inventory into sales.