The following information relates to RAM Corporation. Accounts receivable $160,000
Total credit sales $2,500,000
Assuming there are 360 days in a year, the receivables collection period of the company is:

Question

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The receivables collection period is calculated as (360 days * Accounts receivable) / Total credit sales.= (360 days * $160,000) / $2,500,000= 23.04 days

The Following Information Relates to RAM Corporation