Hickory Hills Pro Shop had a balance in the Accounts Receivable account of $800,000 at the beginning of the year and a balance of $900,000 at the end of the year. Net credit sales during the year amounted to $7,310,000. 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 ($800,000 + $900,000) / 2 = $850,000. Thus, the average collection period is ($850,000 / $7,310,000) * 365 = 42.4 days.

Hickory Hills Pro Shop Had a Balance in the Accounts