A Company Had Net Sales of $31,500 and Ending Accounts

question 171

Multiple Choice

A company had net sales of $31,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected is equal to:

• A)11.7 days
• B)23.3 days
• C)31.3 days
• D)42.5 days
• E)46.6 days

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Definitions:

Good Faith

A principle that denotes honesty, fairness, and sincerity in the intentions and actions of parties involved in an agreement or transaction, without the intention to deceive or defraud.

Non-merchants

Individuals or entities engaged in transactions who do not regularly deal in goods of the kind sold, thus not considered a merchant under the Uniform Commercial Code.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions between states, ensuring consistency and predictability in business dealings.

Good Faith

Acting with honesty and integrity in dealings without any intent to defraud or seek an unfair advantage.