Benson Industrial Corp. reports net sales of $1,495,600 and accounts receivable of $85,000 at the beginning of the year and $81,000 at the end of the year. What is the average collection period for accounts receivable in days?

Benson Industrial Corp. reports net sales of $1,495,600 and accounts receivable of $85,000 at the beginning of the year and $81,000 at the end of the year. What is the average collection period for accounts receivable in 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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Question

What is the average collection period for accounts receivable in days of this financial accounting question?

Benson Industrial Corp. reports net sales of $1,495,600 and
accounts receivable of $85,000 at the beginning of the year and
$81,000 at the end of the year. What is the average collection
period for accounts receivable in days?

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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