If Challenge Corporation Has Sales of $2 Million Per Year

question 68

Multiple Choice

If Challenge Corporation has sales of $2 million per year (all credit) and an average collection period of 35 days, what is its average amount of accounts receivable?

• A) $191,781
• B) $57,143
• C) $5,556
• D) $97,222

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Definitions:

Fixing

Manipulating or setting prices, outcomes, or market conditions, often in an illegal or unethical way.

Fines

are monetary penalties imposed by authorities as punishment for violating laws or regulations.

Microsoft

A leading multinational technology company known for its software products like Windows operating systems, Office suite, and Surface computing devices.

Windows

A graphical operating system developed by Microsoft, providing an environment for executing and managing applications.