<u>Answer:</u> 41 days
<u>Explanation:</u>
Given
Net credit sales 720000
Accounts receivable opening balance 70000
Accounts receivable closing balance 90000
Average accounts receivable = (opening balance + closing balance) / 2
=(70000+90000)
=160000/2
=80000
Accounts receivable turnover ratio = net sales/ average accounts receivable
=720000/80000
=9 times
Average collection period for accounts receivables
= 365/ accounts receivable turnover ratio
=365/9
=40.5
Average collection period for accounts receivables is 41 days
5% if I am correct please tell me if I am! Thank you!
Answer:
A) Seasonal discount
Explanation:
A Seasonal discount is a discount that is applied in specific periods of the year. For example: Christmas season, halloween season, black friday season, etc.
In this example, the good is a christmas tree, which is obviously related to the christmas season, therefore, the discount apply on it is a seasonal discount, even if the discount in not applied in December but in July.
Answer:
Correct answer is A.
2/12
Explanation:
The total time period for which interest will be accrued and will be credited to the interest income account would be for the period November 1,2018 - December 31,2018 i.e 2 months.