Thompson Wood Products has credit sales of $1,944,000 and accounts receivable of $270,000. Compute the value...

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Thompson Wood Products has credit sales of $1,944,000 and accounts receivable of $270,000. Compute the value of the average c

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Answer 1

Answer #1

The average collection period is :

= 365/ accounts receivables turnover ratio

Accounts receivables turnover = credit sales/ accounts receivables

= $1,944,000 / $270,000

= 7.2

So, the average collection period is :

= 365/ 7.2

= 50.6944 days

So, the average collection period is 50.69 days

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Answer 2

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Thompson Wood Products has credit sales of $1,944,000 and accounts receivable of $270,000. Compute the value...

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Add Answer to: Thompson Wood Products has credit sales of $1,944,000 and accounts receivable of $270,000. Compute the value...

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Thompson Wood Products has credit sales of $1,944,000 and accounts receivable of $270,000. Compute the value...