A Company Has Net Credit Sales of $1,200,000, Beginning Net

question 130

Multiple Choice

A company has net credit sales of $1,200,000, beginning net accounts receivable of $290,000, and ending net accounts receivable of $201,000. What is the days' sales in accounts receivable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole day.)

• A) 75 days
• B) 149 days
• C) 61 days
• D) 88 days

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Definitions:

Noneconomic Damages

Compensation awarded in a lawsuit for losses that do not have a direct monetary value, such as pain and suffering, loss of companionship, or emotional distress.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability.

Disclaimer

A term in a contract whereby a party attempts to relieve itself of some potential liability associated with the contract. The most common example is the seller’s attempt to disclaim liability for defects in goods that it sells.

Recovery

The act of obtaining something of value through legal means, often in compensation for damages or loss.