Problem:
The Bear Rug has sales of $822,500. The cost of goods sold is equal to 63 percent of sales. The beginning accounts receivable balance is $41,000 and the ending accounts receivable balance is $38,000.
Required:
Question: How long on average does it take the firm to collect its receivables?
A. 17.16 days
B. 17.78 days
C. 17.53 days
D. 20.44 days
E. 26.57 days
Note: Please show how to work it out.