For the Year Just Ended, James' Drafting Supplies Had Average

For the year just ended, James' Drafting Supplies had average accounts receivable of $880,000 and total credit sales of $4,800,000. Throughout the year, a factor purchased accounts receivable from the firm at a 2% discount. If the firm wishes to get its factoring costs below 11%, what is the MAXIMUM days in receivables it can have?

A) 67 days
B) 70 days
C) 72 days
D) 75 days
E) 87 days