A firm has $400,000 in credit sales and $100,000 in accounts receivable. Compute accounts receivable turnover and average number of collection days. How do these numbers relate to the terms of 2/10, n/30?© BrainMass Inc. brainmass.com June 4, 2020, 12:08 am ad1c9bdddf
credit sales 400000
accounts receivables 100000
receivables turnover= net credit sales/accounts receivables 4
average collection period=(365 days*accounts receivables)/net credit sales 91.25
How do these numbers relate to the terms of 2/10, ...
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