Hulkster's 2016 average collection period is:

Question

Quizplus · Accepted Answer

The average collection period is calculated by dividing the accounts receivable by the average daily credit sales. 
Average daily credit sales can be calculated by dividing the total credit sales for the period by the number of days in the period. 
Therefore, the formula for calculating the average collection period is: 
Average Collection Period = (Accounts Receivable / Average Daily Credit Sales)
Given the following information: 
Accounts Receivable = $19,500 
Total Credit Sales = $758,000 
Period = 365 days 
Average Daily Credit Sales = Total Credit Sales / Period 
= $758,000 / 365 
= $2,077.81 
Average Collection Period = (Accounts Receivable / Average Daily Credit Sales) 
= $19,500 / $2,077.81 
= 9.39 months or 283 days 
Therefore, the answer is not given in the options provided. However, the closest option to the calculated value is 73 days. It is unclear how the given options were calculated.

Hulkster's 2016 Average Collection Period Is