Deegan Industries has an accounts receivable turnover rate of 8. Which of the following statements is NOT true? - Deegan's accounts receivable are more liquid than those of a business whose accounts receivable turnover rate is 5.- Deegan waits approximately 46 days to make collections of its credit sales. (Use 365 days in a year.) - Deegan writes off accounts receivable as uncollectible if they are over 45 days old. - Deegan's net credit sales are about eight times the amount of its average accounts receivable.
Deegan Industries has an accounts receivable turnover rate of 8. Which of the following statements is NOT true? - Deegan's accounts receivable are more liquid than those of a business whose accounts receivable turnover rate is 5.- Deegan waits approximately 46 days to make collections of its credit sales. (Use 365 days in a year.) - Deegan writes off accounts receivable as uncollectible if they are over 45 days old. - Deegan's net credit sales are about eight times the amount of its average accounts receivable.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,