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?
If a company has average accounts receivable of $60,000 and annual sales of $720,000, what is the DSO, assuming a 360-day year?
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.
Thus Answer? ? General Accounting
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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?