Deegan Industries has an accounts receivable turnover rate of 8. Which of the following statements is not true?
A. Deegan's accounts receivable are more liquid than those of a business whose accounts receivable turnover rate is 5.
B. Deegan waits approximately 46 days to make collections of its credit sales. (Use 365 days in a year.)
C. Deegan writes off accounts receivable as uncollectible if they are over 45 days old.
D. Deegan's net credit sales are about eight times the amount of its average accounts receivable.
C
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