Ask Question
7 September, 20:05

Q 8.18: The financial statements of the Harrison Company report net sales of $200,000 and accounts receivable of $10,000 and $5,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days

+3
Answers (1)
  1. 7 September, 23:54
    0
    The answer is $13.5 days

    Explanation:

    The average collection period for accounts receivable in days in a year is the number of days from selling goods and services on credit and the day it takes to receive cash.

    It is calculated as average accounts receivable divided net sales multiply by the number of days in a year.

    In the question, let's take the number of days in a year as 360days.

    Average Accounts Receivable is

    $10,000 + $5,000

    $7,500.

    Therefore, the number if days is now:

    ($7,500/$200,000) x 360days

    =13.5 days
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Q 8.18: The financial statements of the Harrison Company report net sales of $200,000 and accounts receivable of $10,000 and $5,000 at the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers