Freeman Co

question 108

Multiple Choice

Freeman Co.had net sales of $4.2 million and ending accounts receivable of $0.8 million.Its days' sales uncollected equals:

• A)5.3 days.
• B)69.5 days.
• C)19.2 days.
• D)11.5 days.
• E)292 days.

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Definitions:

Drawer-payor Bank

Refers to the bank upon which a check is drawn and is responsible for paying the check when it is presented.

Banking Day

A business day during which financial institutions are open for conducting banking transactions.

Bank Statement

A bank statement is a summary of financial transactions that occurred over a certain period of time in a bank account, provided regularly by the bank to the account holder.

Transactions

The act of conducting business or commercial activities, often involving the exchange of goods, services, or funds.