Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below:
Required:Compute the average collection period for this year:

Question

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below:  Required:Compute the average collection period for this year:

Krystal Izquierdo · Accepted Answer

Final Answer : Average collection period = 365 days ÷ Accounts receivable turnover*= 365 days ÷ 5.94 = 61.4 days*Accounts receivable turnover = Sales on account ÷ Average accounts receivable balance**= $647,000 ÷ $109,000 = 5.94 **Average accounts receivable= ($104,000 + $114,000) ÷ 2 = $109,000

Data from Dalpiaz Corporation's most recent balance sheet and income statement appear below:
Required:Compute the average collection period for this year:

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