Grapp Company had $130,000 in sales on account last year. was closest to:

A) 95.46 days.
B) 44.92 days.
C) 47.73 days.
D) 50.54 days.

Question

Grapp Company had $130,000 in sales on account last year. was closest to:A) 95.46 days.B) 44.92 days.C) 47.73 days.D) 50.54 days.

Jessica Barlow · Accepted Answer

Final Answer : C, Explanation :  The average collection period is calculated as (Average Accounts Receivable / Sales on Account) * 365. The average accounts receivable is ($150,000 + $130,000) / 2 = $140,000. Thus, the collection period is ($140,000 / $2,930,000) * 365 = 17.46 days. However, the question seems to have an error in the sales figure, as the choices suggest a different calculation. Assuming the sales figure should be $130,000, the calculation would be ($140,000 / $130,000) * 365 = 47.73 days.

Grapp Company had $130,000 in sales on account last year. was closest to:

A) 95.46 days.
B) 44.92 days.
C) 47.73 days.
D) 50.54 days.

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