Bilt Rite, Inc. has sales of $610,000. The cost of goods sold is equal to 70% of sales. The beginning accounts receivable balance is $21,000 and the ending accounts receivable balance is $25,000. How long on average does it take the firm to collect its receivables?

A) 13.76 days
B) 14.09 days
C) 21.07 days
D) 25.98 days
E) 26.52 days

Accounts Receivable Balance

The entire sum owed by customers to a company for the consumption of goods or services for which payment has not been made.

Cost of Goods Sold

The immediate expenses linked to the creation of products that a company sells.

Sales

The transactions involving the exchange of goods or services for money, constituting the revenue of a business.