Sales for the year were $400,000. The Accounts Receivable balance was $50,000 at the beginning of the

Question:

Sales for the year were $400,000. The balance was $50,000 at the beginning of the year and $65,000 at the end of the year. Compute the average collection period using
(1) The average balance and
(2) The ending balance.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...