Provide Answer of this one please need Correct Answer general accounting Your company had net sales of $100,000 over the past year. Half the saleswere credit sales. During that time, average receivables were $5,000.What was the average collection period? (Assume a 360-day year)a. 18 daysb. 27 daysc. 36 daysd. 72 dayse. 60 days

Step 1: Define Average Collection PeriodThe average collection period is determined when analyzing…

Answered: Your company had net sales of $100,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14MC: Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit...

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A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use a 360-day year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Average collection period days Prev 5 of 10 94 Next >
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Your company had net sales of $100,000 over the past year. Half the sales were credit sales. During that time, average receivables were $5,000. What was the average collection period? (Assume a 360-day year) a. 18 days b. 27 days c. 36 days d. 72 days e. 60 days