In the case of presentment across the counter, the payer bank has six banking days to dishonor the check

At year-end, Schultz Inc. has cash of $11,600, current accounts receivable of $48,900, merchandise inventory of $37,900, and prepaid expenses totaling $5,100. Liabilities of $55,900 must be paid next year. Assume accounts receivable had a beginning balance of $67,400 and net credit sales for the current year totaled $807,800. How many days did it take Schultz to collect its average level of receivables?

A. 49 B. 35 C. 29 D. 26

A contingency was evaluated at year-end

Management felt it was probable that this would become an actual liability and the amount could be reasonably estimated. If this is reported on the balance sheet, it could be considered a violation of generally accepted accounting principles. Indicate whether the statement is true or false