Question
A company has sales of $1.9 million and 15 percent of sales are cash.The accounts receivable balance at the end of the year is $210,000.
A company has sales of $1.9 million and 15 percent of sales are cash. The accounts receivable balance at the end of the year is $210,000.
What is the average collection period? (Use a 360-day year. Do not round intermediate estimates. Round your final answer to 2 decimal places.)
Average collection period __________ days?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
First we need to calculate the amount of cash sales Cash sales 15 of 19 million 015 x 19 million 285...
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Step: 2
Step: 3
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
