Need answer the general accounting question ABC Electronics had net sales of $150,000 over the past year. 60% ofthe sales were credit sales. During that time, average receivables were$7,500.What was the average collection period? (Assume a 360-day year.)

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

Answered: ABC Electronics had net sales of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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ABC Electronics had net sales of $150,000 over the past year. 60% of the sales were credit sales. During that time, average receivables were $7,500. What was the average collection period? (Assume a 360-day year.)