Question

The average collection period is calculated as 365 divided by Multiple choice question. average accounts receivable. average total assets. net credit sales. the receivable turnover ratio.

Answer 1

Step-by-step explanation:

The average collection period can be calculated using the accounts receivable turnover by dividing the number of days in the period by the metric. In this example, the average collection period is the same as before at 36.5 days (365 days ÷ 10).