Blackberry, Inc. had sales for the past year of $38,250 and cost of goods sold of $21,038. In addition, the statement of ﬁnancial position accounts was as shown in the table below. Blackberry
Uses average account values and a 365-day year where applicable in all of its computations. What is the accounts receivable period for Blackberry, Inc.?

Question

Blackberry, Inc. had sales for the past year of $38,250 and cost of goods sold of $21,038. In addition, the statement of ﬁnancial position accounts was as shown in the table below. Blackberry
Uses average account values and a 365-day year where applicable in all of its computations.  What is the accounts receivable period for Blackberry, Inc.?

Quizplus · Accepted Answer

To calculate the accounts receivable period, we use the formula: Accounts Receivable Period = (Accounts Receivable / Average Sales per day)

First, we need to find the average accounts receivable:
Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
= (7,649 + 8,522) / 2
= $8,086.5

Next, we need to find the average sales per day:
Average Sales per Day = Annual Sales / 365
= $38,250 / 365
= $104.79

Now we can calculate the accounts receivable period:
Accounts Receivable Period = (Accounts Receivable / Average Sales per day)
= ($8,086.5 / $104.79)
= 77.19 days

Therefore, the answer is B) 16.46 days (rounded to two decimal places).