A company had an accounts receivable balance of $425,000 at the beginning of the year and $500,000 at the end of the year. The total credit sales during the year were $3,600,000. What was the average collection period in days (round to the nearest number of days)? A. 43 days B. 47 days C. 51 days D. 53 days

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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A company had an accounts receivable balance of $425,000 at the
beginning of the year and $500,000 at the end of the year. The total
credit sales during the year were $3,600,000. What was the average
collection period in days (round to the nearest number of days)?
A. 43 days
B. 47 days
C. 51 days
D. 53 days
Transcribed Image Text:A company had an accounts receivable balance of $425,000 at the beginning of the year and $500,000 at the end of the year. The total credit sales during the year were $3,600,000. What was the average collection period in days (round to the nearest number of days)? A. 43 days B. 47 days C. 51 days D. 53 days
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