Q. Ninety-percent of X company's total sales of $600,000 is on credit. If its year-end receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end receivables are, respectively: (Solved)
1. 365 days and $108,000.
2. 73 days and $120,000.
3. 73 days and $108,000.
4. 81 days and $108,000.
- c. 73 days and $108,000.