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Chik’s Chickens has accounts receivable of $6,333. Sales for the year were $9,800. What is its average collection period? (Use 365 days in a year. Do not round intermediate calculations. Round your final answer to the nearest whole number.)

Respuesta :

ayokenny2001

Answer:

236 days

Explanation:

Average collection period is computed as;

= Receivables at start of the year / Average daily sales

Given that;

Receivables at start of the year

= $6,333

Daily sales

= Sales for the year / Days in a year

= $9,800 / 365 = 26.849315068

Therefore,

Average collection period = $6,333 / 26.849315068

Average collection period = 235.87193878

Average collection period = 236 days. Approximated.

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