A firm has an average accounts payable balance of $132,000.The average number of days that the firm takes to pay its debt is 22 days.What is its average daily cost of goods sold?
A)$4,000
B)$132,000
C)$126,000
D)$6,000
E)$6,600

Question

Quizplus · Accepted Answer

To calculate the average daily cost of goods sold, we need to use the following formula:

Average daily cost of goods sold = (Accounts payable balance/Number of days to pay debt)

Substituting the given values, we get:

Average daily cost of goods sold = ($132,000/22) = $6,000

Therefore, the correct answer is D.

A Firm Has an Average Accounts Payable Balance of $132,000