what is the average collection period? A retail company had total sales of$720,000 for the year, with 75% beingcredit sales. The average accountsreceivable balance was $60,000.Assuming a 360-day year, what is theaverage collection period?

Step 1: Definition of Average Collection PeriodThe Average Collection Period measures the average…

Answered: A retail company had total sales of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PA: Fitbands estimated sales are: What are the balances in accounts receivable for January, February,...

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Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
What was the average collection period?
What was the average collection period?
What was the average collection period? Accounting
A company's accounts receivable shows $180,000 at year-end. If their average collection period is 45 days (using 360-day year), calculate their annual credit sales.
A company had net sales of $120,000 over the past year. 60% of the sales were credit sales. During that time, average receivables were $6,000. What was the average collection period? (Assume a 360-day year) a) 20 days b) 30 days c) 40 days d) 60 days e) 45 days MCQ
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A company had net sales of $120,000 over the past year. 60% of the sales were credit sales. During that time, average receivables were $6,000. What was the average collection period? (Assume a 360-day year) a) 20 days b) 30 days c) 40 days d) 60 days e) 45 days
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A firm has sales of $1.6 million, and 25 percent of the sales are for cash. The year-end accounts receivable balance is $175,000.What is the average collection period?
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A retail company had total sales of $720,000 for the year, with 75% being credit sales. The average accounts receivable balance was $60,000. Assuming a 360-day year, what is the average collection period?