The formula for average collection period is:
A) 365 days divided by the receivable turnover ratio.
B) 365 days divided by net credit sales.
C) 365 days divided by average accounts receivable.
D) Net credit sales divided by average accounts receivable.
Answer: 365 days divided by the receivable turnover ratio.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.