Question

Bilt Rite has sales of $610,000 and cost of goods sold equal to 68 percent of sales. The beginning accounts receivable balance is $58,900 and the ending accounts receivable balance is $61,050. How long on average does it take the firm to collect its receivables? Use average receivables during the year. Group of answer choices 35.89 days 25.98 days 26.52 days 41.07 days 44.09 days

Answer 1

Answer:

Explanation:

Receivables turnover = $610,000[($21,000 + $25,000)2] = 26.52; Receivables period = 36526.52 = 13.76 days