A company with net sales of $800,000, a beginning balance of net receivables of $70,000, and an ending balance of net receivables of $90,000 has a collection period of rounded):

Question

Quizplus · Accepted Answer

The average net receivables is ($70,000 + $90,000) / 2 = $80,000. The receivables turnover ratio is $800,000 / $80,000 = 10. The collection period is 365 / 10 = 36.5 days, rounded to 36 days.

A Company with Net Sales of $800,000, a Beginning Balance