Windsor Corporation sells its goods on terms of 2/10, n/30. It has an accounts receivable turnover of 8. What is its average collection period (days)?
A) 80
B) 30
C) 46
D) 36

Name: Windsor Corporation sells its goods on terms of 2/10, n/30. It has an accounts receivable turnover of 8. What is its average collection period (days)? A) 80 B) 30 C) 46 D) 36
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average collection period is 360 days / accounts receivable turnover. So, 360 days / 8 = 46 days.

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