Selected Financial Statement Data for California Ltd, at Its December

Multiple Choice

Selected financial statement data for California Ltd, at its December 31 year end is below: $$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 8 } & \mathbf { 2 0 2 2 } \\\hline \text { Current Assets } & & \\\hline \text { Pash } & \$ 32,000 & \$ 21,750 \\\hline \text { Accounts Receivable } & \$ 247,500 & \$ 299,000 \\\hline \text { Invertory } & \$ 2,762,300 & \$ 2,668,425 \\\hline \text { Prepaid expenses } & \underline{ \$ 6 , 2 0 0 } & \underline{ \$9 , 875} \\\hline \text { Total Current Assets } & \underline{\$ 2,141,500 }& \underline{\$ 1,986,000} \\\hline \text { Current Liabilities } & \$ 3,048,000 & \$ 2,999,050 \\\hline \text { Net Credit Sales } & \$ 2,238,000 & \$ 2,448,000 \\\hline\end{array}$$ California's credit terms are net 30 days. A 2% discount can be taken if the bill is paid within 10 days from the invoice date. In 2018, California collects its accounts receivable

A) Within the 30 days, as required by its credit terms
B) After the 30-day terms passed
C) Within the 10-day discount period
D) More information is needed to answer this question
E) Within the 20 days, as required by its credit term