12)

Assume a company had sales on account of $90,000 and its beginning and ending balances in accounts receivable were $12,000 and $8,000, respectively. In addition, its cost of goods sold was $72,000 and its beginning and ending inventory balances were $10,000 and $14,000, respectively. The average collection period is closest to:

Multiple Choice

• 52.56 days.

• 60.83 days.

• 40.56 days.

• 49.81 days.