Thompson Wood Products has credit sales of $2,160,000 and accounts receivable of $288,000. Compute the value of the average collection period.
Solution:
Thompson Wood Products
Average collection period= (Accounts Receivable)/(Average daily credit sales)
Average daily credit sales= (annual credit sales)/xxx= $x, xxx, xxx/xxx=$,xxxx
Therefore, the values average collection period= $xx, xxx/$x, xxx
=xxdays
Click on the WhatsApp button below or Scan the Code and text us to get a complete solution to the question above.
