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90% of Redmond Hotel's Sales Are Made on Credit

Question 21

Multiple Choice

90% of Redmond Hotel's sales are made on credit. Sales were $405,556 last year and the hotel had an opening year accounts receivable balance of $26,000, and a year-end accounts receivable balance of $34,000. Based on this information, what is the average amount of days of credit that the Redmond Hotel is extending to its credit customers?


A) Approximately 29 days
B) Approximately 30 days
C) Approximately 31 days
D) Approximately 32 days
E) Approximately 33 days

Correct Answer:

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