North Rustico Inc.'s average collection period for accounts receivable is 5.5.If credit sales were $1,200,000 and ending accounts receivable were $200,000, what would be the opening accounts receivable balance?

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The average collection period is the average number of days it takes for a company to collect its accounts receivable. The formula to calculate the average collection period is: (Ending Accounts Receivable / Credit Sales) * 365. Given that North Rustico Inc.'s average collection period is 5.5 days, credit sales are $1,200,000, and ending accounts receivable is $200,000, we can rearrange the formula to solve for the opening accounts receivable balance. First, calculate daily sales: $1,200,000 / 365 = $3,287.67. Then, since the collection period is 5.5 days, the amount of sales collected in that period is $3,287.67 * 5.5 = $18,082.69. If ending accounts receivable is $200,000, to find the opening balance, we add the sales during the collection period to the ending balance, which gives us $218,082.69. However, since this option is not available and considering the calculation approach might have been misunderstood, the correct answer involves understanding that the opening balance plus sales minus collections equals the ending balance. Without direct information on collections or a straightforward way to calculate the opening balance from the given data, the correct answer is derived from understanding the relationship between these variables and the average collection period. The correct calculation involves understanding the formula for the average collection period and its application to finding the opening balance, which was not accurately represented in the initial explanation.