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.
20,153,775 questions answered
Popular Conversations
Tissues arranged together make up _____, which, when functioning ...
Weegy: Tissues arranged together make up ORGANS, which, when functioning together in groups, make up SYSTEMS. User: ...
3/27/2015 1:09:34 PM| 7 Answers
The Ramayana is a text from ...
Weegy: The Ramayana is a text from India. User: The following question references Chapter 4 of The Three Musketeers ...
3/27/2015 5:43:33 AM| 2 Answers
The Preamble is the __________. A. introduction to the ...
Weegy: The Preamble is the introduction to the Constitution. User: Federal is defined as __________. A. the ...
3/27/2015 6:43:00 AM| 2 Answers
What was the first armed conflict of the Cold War? A. the Korean ...
Weegy: The Korean war was the first armed conflict of the Cold War. User: What was the outcome of the Vietnam ...
3/27/2015 11:35:25 AM| 2 Answers
Weegy Stuff
S
L
P
L
P
P
P
Points 1270 [Total 9156]| Ratings 0| Comments 1270| Invitations 0|Offline
S
1
L
Points 622 [Total 1533]| Ratings 6| Comments 562| Invitations 0|Offline
S
P
C
L
P
L
1
P
Points 475 [Total 7782]| Ratings 8| Comments 395| Invitations 0|Offline
S
1
L
L
Points 439 [Total 7940]| Ratings 0| Comments 439| Invitations 0|Online
S
Points 401 [Total 906]| Ratings 10| Comments 291| Invitations 1|Offline
S
L
Points 353 [Total 1475]| Ratings 2| Comments 333| Invitations 0|Offline
S
Points 199 [Total 567]| Ratings 3| Comments 169| Invitations 0|Offline
S
Points 56 [Total 56]| Ratings 0| Comments 56| Invitations 0|Online
S
Points 42 [Total 158]| Ratings 4| Comments 2| Invitations 0|Offline
S
Points 35 [Total 126]| Ratings 0| Comments 35| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.