In Calculating Each of the Last Six Months' Uncollected Balance

question 7

Multiple Choice

In calculating each of the last six months' uncollected balance percentages,the current accounts receivable balance is split into uncollected balances by month in which they originate.Then,each month's uncollected balance is divided by the __________________________________________.

• A)current accounts receivable balance
• B)sum of the accounts receivable balances from the last six months
• C)credit sales for that month
• D)the sum of the credit sales from the last six months

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Definitions:

Teller's Check

A bank check that is drawn on the bank's own funds and signed by a cashier.

Drawer

The entity or person who writes or creates a check, thereby instructing the bank to pay the stated amount to the party named on the check.

Drawee

The party upon whom a check or draft is drawn, typically a bank, that is directed to pay a certain amount of money.

Stop-payment Order

An instruction given to a bank to stop a check or payment that hasn't been completed.