The accounting records of the Harris and Schubert Companies contained the following account balances: SalesAccounts receivableHarris $300,000 $60,000 Schubert 180,000 40,000 Which of the following statements is true?
A. The average number of days to collect accounts receivable for Harris is 73 days.
B. The company with the higher accounts receivable turnover ratio will also have the longer average number of days to collect accounts receivable.
C. The accounts receivable for Schubert Company turns over 6 times each year.
D. Schubert Company has a lower likelihood of lost income resulting from credit costs.
Answer: A
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