The Financial Statements of the Melton Manufacturing Company Report Net

Multiple Choice

The financial statements of the Melton Manufacturing Company report net sales of $360,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and the end of the year, respectively.What is the average collection period for accounts receivable in days?

A) 81.1
B) 40.6
C) 50.7
D) 30.4