Calculate the Average Collection Period for Dots Inc

question 72

Multiple Choice

Calculate the average collection period for Dots Inc.if its accounts receivables were $550 at the beginning of a year in which the firm generated $3,000 of sales?

• A) 60 days
• B) 61 days
• C) 67 days
• D) 73 days

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Definitions:

Retailer-Sponsored Cooperatives

A group of retail merchants that band together to purchase goods in bulk to save money and share marketing expenses, often to better compete with larger chains.

Wholesaler-Sponsored Voluntary Chains

A retailing strategy where independent retailers band together under a wholesaler's brand and distribution system to compete with larger chains.

Franchises

Business model that allows individuals or entities (franchisees) to operate a business under the established brand and operational system of the franchisor in exchange for a fee and ongoing royalties.

Self-Service

refers to a system or process that allows customers to perform services for themselves without direct assistance from staff, commonly seen in retail, banking, and online platforms.