Raymond Company reports the following information for the 2014 fiscal year: Determine the average number of days it takes Raymond to collect its accounts receivable. (Round intermediate calculations to 2 decimal places.)
A)27
B)14
C)25
D)20

Question

Raymond Company reports the following information for the 2014 fiscal year:  Determine the average number of days it takes Raymond to collect its accounts receivable. (Round intermediate calculations to 2 decimal places.)
A)27 
B)14 
C)25 
D)20

Quizplus · Accepted Answer

$680,000/($50,000 - $2,500) = 14.32 Accounts receivable turnover; 365/14.32 = 25 days

Raymond Company Reports the Following Information for the 2014 Fiscal