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Korolek [52]
2 years ago
15

Blaney Clothing Store had a balance in the Accounts Receivable account of $437,500 at the beginning of the year and a balance of

$500,000 at the end of the year. Net credit sales during the year amounted to $3,000,000. The average collection period of the receivables in terms of days was A : 365 days. B : 60.1 days. C : 57 days. D : 53.2 days.
Mathematics
1 answer:
REY [17]2 years ago
8 0

Answer:

Option C : 57 days

Step-by-step explanation:

Average Accounts Receivables=

<u>                  Opening Accounts Receivables+ Closing Accounts Receivables </u>

                                                              2

Average Accounts Receivables= <u>437,500+ 500,000</u>

                                                                    2

Average Accounts Receivables= $468750

Average Collection Period = (Average Accounts Receivables÷Credit Sales )        

                                                                          ×365

Average Collection Period = (468750÷3000000) ×365

Average Collection Period = 57 days

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