In 2020, Hazy Company had total sales of $3,547,500, it is estimated that 80% of company sales are made on credit and the average balance in the accounts receivable for the same period was $345,000. The company's credit terms require that all receivables be paid within 30 days.
Instructions
a) Calculate Hazy's average days to collect accounts receivable.
b) Based on your answer to the above, comment on Hazy's credit policies.

Question

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The Answer of In 2020, Hazy Company had total sales of $3,547,500, it is estimated that 80% of company sales are made on credit and the average balance in the accounts receivable for the same period was $345,000. The company's credit terms require that all receivables be paid within 30 days.
Instructions
a) Calculate Hazy's average days to collect accounts receivable.
b) Based on your answer to the above, comment on Hazy's credit policies.

In 2020, Hazy Company Had Total Sales of $3,547,500, It