The financial statements of the Belfry Manufacturing Company report net sales of $600,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and the end of the year, respectively.What is the average collection period for accounts receivable in days?

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The average collection period is calculated by dividing the average accounts receivable by the net sales per day. The average accounts receivable is ($80,000 + $40,000) / 2 = $60,000. The net sales per day is $600,000 / 365 = $1,643.84. The average collection period is $60,000 / $1,643.84 = 36.5 days.

The Financial Statements of the Belfry Manufacturing Company Report Net