The Financial Statements of the Belfry Manufacturing Company Reports Net

question 198

Multiple Choice

The financial statements of the Belfry Manufacturing Company reports net sales of $500,000 and accounts receivable of $80,000 and $40,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days?

• A) 29.2 times
• B) 86.9 times
• C) 44.0 times
• D) 57.9 times