Abex Employment Agency has requested an increase in the firm’s line of credit, and the bank is reviewing Abex’s sales and collections history Although the firm’s sales have increased the bank is concerned about the credit quality of the firm’s customers

Abex Employment Agency has requested an increase in the firm’s line of credit, and the bank is reviewing Abex’s sales and collections history Although the firm’s sales have increased the bank is concerned about the credit quality of the firm’s customers

Based on the following information calculate the average collection period for the firm Use a 365-day year in your calculations.

A . 80 days
B. 88 days
C. 99 days
D. 101 days

View Answer

Answer: A