Question and answer
In 2010, Viking Corporation has net credit sales of $850,000 and an average (net) accounts receivable balance of $62,500. The average collection period in terms of days for 2010 is:
The average collection period is the average number of days between 1) the date that a credit sale is made, and 2) the date that the money is received from the customer. [ The average collection period is also referred to as the days’ sales in accounts receivable. The average collection period can be calculated as follows: 365 days in a year divided by the accounts receivable turnover ratio.
Assuming that a company has an accounts receivable turnover ratio of 10 times per year, the average collection period is 36.5 days (365 divided by 10). An alternate way to calculate the average collection period is: the average accounts receivable balance divided by average credit sales per day. If a company offers credit terms of net 30 days, the company may find that its average collection period is actually 45 days or more. Monitoring the average collection period is important for a company’s cash flow and its ability to meet its obligations when they come due. ]
Get an answer
Original conversation
User: The average collection period in terms of days is calculated:

User: In 2010, Viking Corporation has net credit sales of $850,000 and an average (net) accounts receivable balance of $62,500. The average collection period in terms of days for 2010 is:

Weegy: The average collection period is the average number of days between 1) the date that a credit sale is made, and 2) the date that the money is received from the customer. [ The average collection period is also referred to as the days’ sales in accounts receivable. The average collection period can be calculated as follows: 365 days in a year divided by the accounts receivable turnover ratio. Assuming that a company has an accounts receivable turnover ratio of 10 times per year, the average collection period is 36.5 days (365 divided by 10). An alternate way to calculate the average collection period is: the average accounts receivable balance divided by average credit sales per day. If a company offers credit terms of net 30 days, the company may find that its average collection period is actually 45 days or more. Monitoring the average collection period is important for a company’s cash flow and its ability to meet its obligations when they come due. ]
Expert answered|wedekind|Points 270|

Question
Asked 5/8/2012 10:19:07 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
21,749,443 questions answered
Popular Conversations
There is a single instrument to measure climate change.
Weegy: There is a single instrument to measure climate change. FALSE. User: How do landfills contribute to global ...
7/29/2015 8:14:02 AM| 2 Answers
Which of the following is the best example of use of voice in a ...
Weegy: The answer is: D. a narrative about the food served in middle-school cafeterias. User: What is the best word ...
7/29/2015 9:00:04 AM| 2 Answers
After Alexander's death, Egypt was ruled by ...
Weegy: After Alexander's death, Egypt was ruled by Ptolemy. User: The philosophy that believed pleasure was the ...
7/29/2015 4:01:30 PM| 2 Answers
Solve this inequality: 9h + 2 User: Solve the following equation: 6y ...
Weegy: 80 = 3y + 2y + 4 + 1, 80 = 5y + 5, 75 = 5y, divide both sides by 5 to get y = 15. The answer is A. y = 15. ...
7/29/2015 8:20:56 PM| 2 Answers
Solve the following inequality: 38 4 B. x > 28 C. x User: Solve ...
Weegy: 3q + 5 + 2q ? 5 = 65 5q = 65 q = 65/5 q = 13 User: The spoke of a wheel reaches from the center of the ...
7/29/2015 8:25:32 PM| 2 Answers
Define the term air resistance.
7/29/2015 1:34:07 AM| 1 Answers
Weegy Stuff
S
1
L
Points 811 [Total 1322]| Ratings 1| Comments 801| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
P
L
Points 616 [Total 10150]| Ratings 3| Comments 566| Invitations 2|Online
S
L
L
Points 344 [Total 8544]| Ratings 5| Comments 294| Invitations 0|Offline
S
Points 241 [Total 241]| Ratings 1| Comments 231| Invitations 0|Offline
S
Points 178 [Total 178]| Ratings 1| Comments 168| Invitations 0|Online
S
1
L
L
Points 79 [Total 8459]| Ratings 0| Comments 79| Invitations 0|Offline
S
Points 65 [Total 65]| Ratings 0| Comments 65| Invitations 0|Offline
S
Points 50 [Total 50]| Ratings 3| Comments 20| Invitations 0|Offline
S
Points 41 [Total 41]| Ratings 2| Comments 21| Invitations 0|Offline
S
Points 13 [Total 108]| Ratings 1| Comments 3| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.