90% of Ridgewell Hotel's sales are made on credit. Sales were $506,945 last year and the hotel had an opening year accounts receivable balance of $37,000, and a year-end accounts receivable balance of $43,000. Based on this information, what is the average amount of days of credit that the Ridgewell Hotel is extending to its credit customers?
A) Approximately 35 days
B) Approximately 28 days
C) Approximately 26 days
D) Approximately 38 days
E) Approximately 32 days

Question

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The Answer of 90% of Ridgewell Hotel's sales are made on credit. Sales were $506,945 last year and the hotel had an opening year accounts receivable balance of $37,000, and a year-end accounts receivable balance of $43,000. Based on this information, what is the average amount of days of credit that the Ridgewell Hotel is extending to its credit customers?

90% of Ridgewell Hotel's Sales Are Made on Credit