Modern Products, Inc. had accounts receivable of $240,000 in 2016, and $300,000 in 2017. Net sales for 2017 was $3,000,000, and gross profit margin was $1,200,000. The average collection period for 2017 was:

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The average collection period is calculated as (Average Accounts Receivable / Net Sales) * 365. Average Accounts Receivable for 2017 is ($240,000 + $300,000) / 2 = $270,000. Therefore, the average collection period is ($270,000 / $3,000,000) * 365 = 32.9 days.