The average number of days to collect accounts receivable is computed by dividing:
A)Accounts Receivable by net income.
B)Accounts Receivable by 365.
C)365 by the accounts receivable turnover ratio.
D)Sales divided by Accounts Receivable.

Question

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Average number of days to collect accounts receivable is calculated by dividing 365 days in a year by accounts receivable turnover.

The Average Number of Days to Collect Accounts Receivable Is