A company with net sales of $500,000, a beginning balance of net receivables of $80,000, and an ending balance of net receivables of $90,000 has a collection period of:

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The collection period is calculated as (Average Net Receivables / Net Sales) * 365. Average Net Receivables = (Beginning Net Receivables + Ending Net Receivables) / 2 = ($80,000 + $90,000) / 2 = $85,000. Collection Period = ($85,000 / $500,000) * 365 = 0.17 * 365 = 62 days.

A Company with Net Sales of $500,000, a Beginning Balance