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ABC Co Has an Average Collection Period of 90 Days for for Its

Question 90

Multiple Choice

ABC Co. has an average collection period of 90 days for its accounts receivable. If total credit sales for the year were $6,000,000, what is the balance in accounts receivable at year-end? Assume a 360-day calendar year.


A) $150,000
B) $2,250,000
C) $1,500,000
D) $40,000

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