net credit sales are normally sold on terms of n/30. net credit sales total 50,000 and...
net credit sales are normally sold on terms of n/30. net credit sales total 50,000 and average gross accounts receivable total 5,000 in the current period. The collection period is.
a. 10 days
b. 30 days
c. 20 days
d. 36 days
e. 73 days
Homework Answers
average Collection Period = (Average Accounts Receivables / Net credit sales )*365 Days
= ($5,000 /50,000)*365 Days = 36 Days (Answer)
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