Accounting study help Marie's Clothing Store had an accounts receivable balance of $490,000 at the beginning...

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Accounting study help

Maries Clothing Store had an accounts receivable balance of $490,000 at the beginning of the year and a year-end balance of

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Answer 1

Answer #1

The correct answer is A) 60 days.

Supporting calculations:

Average collection period of the receivables = Average balance of Accounts Receivable / Net Credit Sales * 365 Days in a Year

= [($490,000 + $620,000/2) / $3,400,000 * 365 Days]

= $555,000 / $3,400,000 * 365 Days

= 59.58 days or 60 days

Therefore, average collection period of the receivables is 60 days.

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Answer 2

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Accounting study help Marie's Clothing Store had an accounts receivable balance of $490,000 at the beginning...

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Marie's Clothing Store had an accounts receivable balance of $470,000 at the beginning of the year...

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Accounting study help Marie's Clothing Store had an accounts receivable balance of $490,000 at the beginning...

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