Rawe Corporation's Accounts Receivable at the End of Year 2

Multiple Choice

Rawe Corporation's accounts receivable at the end of Year 2 was $329,000 and its accounts receivable at the end of Year 1 was $280,000. Sales, all on account, amounted to $1,350,000 in Year 2. The company's average collection period (age of receivables) for Year 2 is closest to:

A) 1.2 days
B) 1.0 days
C) 82.4 days
D) 89.0 days