Blackwell Co.has sales of $518,300,costs of goods sold of $308,200,and average accounts receivable of $54,900.How long on average does it take the firm's credit customers to pay for their purchases?

Name: Blackwell Co.has sales of $518,300,costs of goods sold of $308,200,and average accounts receivable of $54,900.How long on average does it take the firm's credit customers to pay for their purchases?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Receivables turnover = $518,300/$54,900 = 9.44Receivables period = 365/9.44 = 38.66 days