Answer:
8.27 times and 44.13 days
Explanation:
The computations are shown below:
As we know that
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
where,
Net credit sales is $33,080
And, the Average accounts receivable would be
= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2
= ($3,638 + $4,358) ÷ 2
= $3,998
So, the accounts receivable turnover ratio would be
= $33,080 ÷ $3,998
= 8.27 times
And the average collection period is
= 365 days ÷ accounts receivable turnover
= 365 days ÷ 8.27 times
= 44.13 days
