The firm that you work for had credit sales of $3,500,000 last year and on average had $33,000 in its accounts receivable during the year.What is its average collection period?

Name: The firm that you work for had credit sales of $3,500,000 last year and on average had $33,000 in its accounts receivable during the year.What is its average collection period?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

3,500,000 / 365 = 9,589.04 average sales per day ====>
average collection period = 33,000 / 9,589.04 = 3.44 days

The Firm That You Work for Had Credit Sales of $3,500,000