- Financial Accounting & Bookkeeping
Calculating the Average Collection Period
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Trying to find the receivable turnover, the day's sales in receivables, and how long it took on average for credit customers to pay off their accounts.
current accounts receivable balance $387,615
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credit sales for the year $2,945,600
Receivable turnover = Credit sales/Accounts Receivable = ...
The solution explains how to calculate the receivable turnover, days sales in receivable and the average collection period.