Respuesta :
Answer:
a. 73 days
Explanation:
The computation of average collection period of the receivables is shown below:-
Beginning Accounts Receivable account = $390,000
Ending Balance of $410,000
Net credit sales = $2,000,000
The average collection period of the receivables in terms of days
= $410,000 + $390,000
= $800,000 ÷ 2
= $400,000
Net credit sales = = $2,000,000 ÷ $400,000
= $5
Average collection period of the receivables in terms of days = Number of days in a year ÷ Net credit sales
= 365 days ÷ $5
= 73 days
The amount owed to a company for goods or services provided or utilized but not yet paid for by consumers is known as accounts receivable. On the balance sheet, accounts receivable are listed as a current asset.
Correct option is A.
The computation of average collection period of the receivables is shown below:-
Beginning Accounts Receivable account = $390,000
Ending Balance of $410,000
Net credit sales = $2,000,000
The average collection period of the receivables in terms of days
= $410,000 + $390,000
= $800,000 ÷ 2
= $400,000
Net credit sales = $2,000,000 ÷ $400,000= $5
Average collection period of the receivables in terms of days = Number of days in a year ÷ Net credit sales
= 365 days ÷ $5
= 73 days
To know more about average collection period, refer to the link:
https://brainly.com/question/13567334
