Sunland Company had a balance in the Accounts Receivable account of $801000 at the beginning of the year and a balance of $901000 at the end of the year. Net credit sales during the year amounted to $8049000. The average collection period of the receivables in terms of days was: a) 4 days.
b) 36.5 days.
c) 37 days.
d) 38.4 days.

d) 38.4 days

Explanation:

Accounts receivable = 801,000 + 901,000 = 1,702,000

Average Account receivables = 1,702,000 / 2 = 851,000

Net credit sales = $8,049,000 / 851,000 = 9.5

The average collection period of the receivables in terms of days = 365 days / 9.5 =38.4 days

Accounts receivable days = 38.4 days

answer; the cpi;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.