If the Collection Period of a Company Is 30 Days,and

question 118

Multiple Choice

If the collection period of a company is 30 days,and the average receivables are $83,000 what is the total amount of the credit sales? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar. )

• A)$2,767
• B)$6,822
• C)$83,000
• D)$1,009,835

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Definitions:

Non-Local Check

A bank check drawn on any bank that is not local to the area where it is being presented for payment.

Depositary Bank

A financial institution that holds assets or securities for safekeeping on behalf of depositors.

Federal Reserve Bank

A part of the Federal Reserve System, which is the central banking system of the United States, responsible for implementing the country's monetary policy.

Recurring Charge

A recurring charge is a periodic fee charged automatically to an account for ongoing services or subscriptions.