Explore BrainMass
Share

Explore BrainMass

    Calculating the Average Collection Period

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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
    credit sales for the year $2,945,600

    © BrainMass Inc. brainmass.com October 9, 2019, 8:45 pm ad1c9bdddf
    https://brainmass.com/business/receivables/calculating-average-collection-period-161751

    Solution Preview

    Receivable turnover = Credit sales/Accounts Receivable = ...

    Solution Summary

    The solution explains how to calculate the receivable turnover, days sales in receivable and the average collection period.

    $2.19