Lila's Art Supplies had an accounts receivable balance of $300,000 at the beginning of the year and $420,000 at the end of the year. During the year, net credit sales totaled $2,920,000. What is the average collection period for the year? a) 47 days b) 58 days c) 45 days d) 60 days

Lila's Art Supplies had an accounts receivable balance of $300,000 at the beginning of the year and $420,000 at the end of the year. During the year, net credit sales totaled $2,920,000. What is the average collection period for the year? a) 47 days b) 58 days c) 45 days d) 60 days

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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I am looking for the correct answer to this financial accounting question with appropriate explanations.

Lila's Art Supplies had an accounts receivable balance of
$300,000 at the beginning of the year and $420,000 at
the end of the year. During the year, net credit sales
totaled $2,920,000.
What is the average collection period for the year?
a) 47 days
b) 58 days
c) 45 days
d) 60 days

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