If a firm has $400,000 in credit sales and $50,000 in average account receivable,average days collection is approximately
A)29.2.
B)5)563.
C)292.
D)45.63.

Name: If a firm has $400,000 in credit sales and $50,000 in average account receivable,average days collection is approximately A)29.2. B)5)563. C)292. D)45.63.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Average days collection is calculated as (Average Accounts Receivable / Credit Sales) * 365. Plugging in the values: ($50,000 / $400,000) * 365 = 45.63 days.

If a Firm Has $400,000 in Credit Sales and $50,000