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.
21,562,315 questions answered
Popular Conversations
Write the equivalent fraction and percent for 0.28. User: Write the ...
Weegy: What is the ratio? User: write the fraction 5/7 as a percent
7/5/2015 3:50:39 PM| 3 Answers
Which of the following was NOT a characteristic trait of Mao's ...
Weegy: Maoism is his philosophy. link to it : [ ] User: Which of the following was NOT a characteristic trait of ...
7/5/2015 1:41:46 PM| 2 Answers
The cost of goods sold divided by the average inventory equals the ...
Weegy: Cost of merchandise sold equals beginning inventory : Plus net purchases less ending inventory. User: ...
7/5/2015 3:12:36 PM| 2 Answers
Weegy Stuff
S
1
L
P
1
1
Points 153 [Total 1559]| Ratings 1| Comments 143| Invitations 0|Offline
S
1
Points 142 [Total 653]| Ratings 0| Comments 142| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
P
Points 52 [Total 9581]| Ratings 0| Comments 52| Invitations 0|Online
S
Points 43 [Total 43]| Ratings 1| Comments 33| Invitations 0|Offline
S
1
L
L
Points 24 [Total 8404]| Ratings 0| Comments 24| Invitations 0|Offline
S
R
Points 8 [Total 210]| Ratings 0| Comments 8| Invitations 0|Offline
S
L
P
P
Points 4 [Total 3563]| Ratings 0| Comments 4| Invitations 0|Offline
S
Points 4 [Total 4]| Ratings 0| Comments 4| Invitations 0|Offline
S
Points 1 [Total 1]| Ratings 0| Comments 1| Invitations 0|Offline
S
Points 1 [Total 44]| Ratings 0| Comments 1| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.