The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and multiplying the quotient by the number of days in the period.
Average collection period is calculated by dividing a company's average accounts receivable balance by its net credit sales for a specific period, then multiplying the quotient by 365 days.
Average collection period is calculated by dividing a company's average accounts receivable balance by its net credit sales for a specific period, then multiplying the quotient by 365 days.
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