Sales for the year were $400,000. The Accounts Receivable balance was $50,000 at the beginning of the year and $65,000 at the end of the year. Compute the average collection period using (1) The average accounts receivable balance and (2) The ending accounts receivable balance.

Sales for the year were $400,000. The Accounts Receivable balance was $50,000 at the beginning of the year and $65,000 at the end of the year. Compute the average collection period using (1) The average accounts receivable balance and (2) The ending accounts receivable balance.

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 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

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Question

Sales for the year were $400,000 General accounting

Sales for the year were $400,000. The Accounts Receivable balance
was $50,000 at the beginning of the year and $65,000 at the end of
the year.
Compute the average collection period using
(1) The average accounts receivable balance and
(2) The ending accounts receivable balance.

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