Harvey Clothing Store had a balance in the Accounts Receivable account of $390,000 at the beginning of the year and a balance of $410,000 at the end of the year.Net credit sales during the year amounted to $3,000,000.The average collection period of the receivables in terms of days was

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The average collection period is calculated as (Average Accounts Receivable / Net Credit Sales) * 365. The average accounts receivable is ($390,000 + $410,000) / 2 = $400,000. Thus, the average collection period is ($400,000 / $3,000,000) * 365 = 48.7 days.

Harvey Clothing Store Had a Balance in the Accounts Receivable