Question regarding the average collection period


At the beginning of 2011, Clay Ventures has accounts receivable of $100,000. By the end of 2011, Clay reports net credit sales of $1,900,000, cost of goods sold of $920,000 and accounts receivable of $200,000. What is the average collection period for 2011 for Clay?

a. 39.7 days

b. 59.5 days

c. 28.8 days

d. 38.4 days

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Accounting Basics: Question regarding the average collection period
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