TechCom Had Net Sales of $480,000 and Average Accounts Receivable

question 36

True/False

TechCom had net sales of $480,000 and average accounts receivable of $64,000. Its accounts receivable turnover was 7.5.

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Definitions:

Cost of Merchandise

The total expense incurred by a business to buy or produce the goods it has sold during a specific period.

Credit Memo

A Credit Memo is a document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller, typically due to a return or an overpayment.

Perpetual Inventory

A system for managing inventory that instantly logs inventory sales or purchases via computerized point-of-sale systems and software for enterprise asset management.

Freight

The charge paid for transport of goods, typically either by land, sea, or air.