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AICPA Exam CPA-Business Topic 1 Question 23 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 23
Topic #: 1
[All CPA-Business Questions]

Clauson Inc. grants credit terms of 1/15, net 30 and projects gross sales for next year of $2,000,000. The credit manager estimates that 40 percent of their customers pay on the discount date, 40 percent on the net due date, and 20 percent pay 15 days after the net due date. Assuming uniform sales and a 360-day year, what is the projected days sales outstanding (rounded to the nearest whole day)?

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Suggested Answer: C

Choice 'c' is correct. 27 days projected days sales outstanding.


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