Winsor Clothing Store had a balance in the Accounts Receivable account of $760,000 at the beginning of the year and a balance of $840,000 at the end of the year. Net credit sales during the year amounted to $6,800,000. The average collection period of the accounts receivable 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 ($760,000 + $840,000) / 2 = $800,000. Thus, the average collection period is ($800,000 / $6,800,000) * 365 = 42.9 days.

Winsor Clothing Store Had a Balance in the Accounts Receivable