If the collection period of a company is 30 days,and the average receivables are $80,000 what is the total amount of the credit sales? (Round all calculations to the nearest dollar.)

Question

Quizplus · Accepted Answer

The total amount of credit sales is equal to the average receivables multiplied by the number of days in the collection period. In this case, the average receivables are $80,000 and the collection period is 30 days, so the total amount of credit sales is $80,000 x 30 = $2,400,000.

If the Collection Period of a Company Is 30 Days,and