At the beginning of 2021, Orion Ltd had accounts receivable of $100,000.At the end of 2021, the company had accounts receivable of $85,000.During 2021, Orion Ltd had total credit sales of $1,500,000.What was this company's average collection period for 2021?

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

Answered: At the beginning of 2021, Orion Ltd had…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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At the beginning of 2021, Orion Ltd had accounts receivable of $100,000. At the end of 2021, the company had accounts receivable of $85,000. During 2021, Orion Ltd had total credit sales of $1,500,000. What was this company's average collection period for 2021?