Windsor Corporation sells its goods on terms of 2/10, n/30.It has an accounts receivable turnover of 6.What is its average collection period (days)?
A)90
B)40
C)61
D)48

Name: Windsor Corporation sells its goods on terms of 2/10, n/30.It has an accounts receivable turnover of 6.What is its average collection period (days)? A)90 B)40 C)61 D)48
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Question

Quizplus · Accepted Answer

The average collection period is calculated as 365 divided by the accounts receivable turnover. So, 365 / 6 = 60.83, which rounds to 61 days.

Windsor Corporation Sells Its Goods on Terms of 2/10, N/30