The average collection period for receivables is computed by dividing 365 days by
A)net credit sales.
B)average accounts receivable.
C)ending accounts receivable.
D)accounts receivable turnover.

Name: The average collection period for receivables is computed by dividing 365 days by A)net credit sales. B)average accounts receivable. C)ending accounts receivable. D)accounts receivable turnover.
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Question

Quizplus · Accepted Answer

The average collection period is calculated by dividing 365 days by the accounts receivable turnover ratio.

The Average Collection Period for Receivables Is Computed by Dividing