If Crossroads International Has $3,000,000 in Total Sales (75% on Credit)

question 74

Multiple Choice

If Crossroads International has $3,000,000 in total sales (75% on credit) and receivables of $500,000, what is its average collection period? Assume a 360-day calendar year.

• A) 80 days
• B) 60 days
• C) 4.5 days
• D) 6 days

---

Definitions:

Sole Proprietorship

A business structure where a single individual owns and runs the business, bearing all the profits and responsibilities for liabilities and debts.