Answer:
Average Collection Period = 57.03
Explanation:
given data
Accounts Receivable beginning = $437,500
Accounts Receivable ending = $500,000
Net credit sales = $3,000,000
to find out
average collection period
solution
we get here first average account receivable that is express as
average account receivable =
average account receivable = $468750
and we consider No of Days in a year is = 365
so Average Collection Period will be
Average Collection Period = × 365
Average Collection Period = 57.03