In 2020, Hazy Company Had Total Sales of $3,547,500, It

question 98

Short Answer

In 2020, Hazy Company had total sales of $3,547,500, it is estimated that 80% of company sales are made on credit and the average balance in the accounts receivable for the same period was $345,000. The company's credit terms require that all receivables be paid within 30 days.
Instructions
a) Calculate Hazy's average days to collect accounts receivable.
b) Based on your answer to the above, comment on Hazy's credit policies.

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Definitions:

By

A preposition indicating agency, means, or location; used to specify the person or thing that performs an action or through which a result is obtained.

Quite

Used as an adverb to indicate a considerable degree or fully; extremely.

It's

abbreviation for "it is" or "it has."

Been

The past participle of "be," used in perfect tenses to indicate an action that occurred at an unspecified time before now.