Question
A company has an accounts receivable turnover of 33.5 days, an average inventory of $120,000, and an average accounts payable balance of $52,000. What is
A company has an accounts receivable turnover of 33.5 days, an average inventory of $120,000, and an average accounts payable balance of $52,000. What is the company's accounts receivable collection period? In your calculations, assume there are 360 days in a year.
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The accounts receivable turnover is defined as the number of times a company collects its average accounts receivable balance in a year We can use this formula to calculate the accounts receivable col...Get Instant Access to Expert-Tailored Solutions
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Financial and managerial accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
1st edition
111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114
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