Rawe Corporation's Accounts Receivable at the End of Year 2

question 208

Multiple Choice

Rawe Corporation's accounts receivable at the end of Year 2 was $329,000 and its accounts receivable at the end of Year 1 was $280,000. Sales, all on account, amounted to $1,350,000 in Year 2. The company's average collection period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) 1.2 days
• B) 1.0 days
• C) 82.4 days
• D) 89.0 days