At year-end, Sally has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $4,600. Liabilities of $32.000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $840,000. How many days did it take Sally to collect its average level of receivables? a. 15 b. 13 c. 17 d. 30
At year-end, Sally has cash of $8,000, current accounts receivable of $40,000, merchandise inventory of $43,200, and prepaid expenses totaling $4,600. Liabilities of $32.000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $840,000. How many days did it take Sally to collect its average level of receivables? a. 15 b. 13 c. 17 d. 30
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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Transcribed Image Text:At year-end, Sally has cash of $8,000, current accounts receivable
of $40,000, merchandise inventory of $43,200, and prepaid
expenses totaling $4,600. Liabilities of $32.000 must be paid next
year. Assume accounts receivable had a beginning balance of
$30,000 and net credit sales for the current year totaled $840,000.
How many days did it take Sally to collect its average level of
receivables?
a. 15
b. 13
c. 17
d. 30
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