Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: 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:
A: 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.
26,437,569 questions answered
Popular Conversations
What is the solution to the proportion? n/18 = 5/9 A. n = 2.5 B. n ...
Weegy: n/18 = 5/9; 9n = 5 * 18 9n = 90 n = 90/9 n = 10
10/12/2017 10:59:55 AM| 8 Answers
Which of the following has kinetic energy? a. a rock poised for a ...
Weegy: A bow that is drawn back by an archer. B. Has kinetic energy.
10/10/2017 2:00:05 PM| 3 Answers
What does everyone have planned for today " What type of sentence is ...
Weegy: "I think it would be best to study the problem carefully." The purpose of the above sentence is: It makes a ...
10/8/2017 2:18:49 PM| 2 Answers
What type of sentence tends to express a strong emotion? A. ...
Weegy: Do your work! The sentence is imperative. User: Which of the following pairs of words are homophones? ...
10/8/2017 2:25:51 PM| 2 Answers
_______ are words that are spelled alike, but have different ...
Weegy: "Near the computer" is a prepositional phrase. User: In which sentence is a homophone used correctly? ...
10/8/2017 2:29:20 PM| 2 Answers
In which one of the following sentences is a word misspelled? ...
Weegy: The sentence with a spelling mistake is: User: Which of the following is an example of an imperative sentence? ...
10/9/2017 8:45:54 AM| 2 Answers
Which of the following about the double-exposition concerto form is ...
Weegy: The development avoids the tonic is TRUE about the double-exposition concerto form. User: The first section ...
10/9/2017 11:33:19 AM| 2 Answers
Weegy Stuff
S
P
P
L
P
P
P
Points 135 [Total 2027] Ratings 11 Comments 25 Invitations 0 Offline
S
P
L
Points 97 [Total 119] Ratings 0 Comments 97 Invitations 0 Offline
S
Points 52 [Total 52] Ratings 4 Comments 12 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
L
Points 1 [Total 100] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.