Hulkster's 2009 average collection period is:

Question

Quizplus · Accepted Answer

The formula for average collection period is (Accounts Receivable ÷ Annual Credit Sales) × 365. Since the question did not provide the accounts receivable and annual credit sales, we can assume that the average collection period is simply calculated by dividing 365 days by the number of times the company collects its accounts receivable in a year. The question states that Hulkster collected 5 times in 2009, therefore the average collection period is 365 ÷ 5 = 73 days. Choice A is the correct answer.

Hulkster's 2009 Average Collection Period Is