The Accounts Receivable Turnover Rate for Baldwin Corporation Is 8

question 178

Multiple Choice

The accounts receivable turnover rate for Baldwin Corporation is 8, and for Basinger Company is 10. These statistics indicate that:

• A) Basinger collects its accounts receivable within 10 days on average; Baldwin collects its accounts receivable in 8 days on average.
• B) Basinger writes off as uncollectible a greater percentage of its accounts receivable than does Baldwin Company.
• C) Basinger collects its accounts receivable faster than does Baldwin Company.
• D) Basinger makes on average 10 credit sales annually to each of its customers, while Baldwin makes 8 credit sales to each customer.