Calculate the average collection period

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Fitzgerald company has credit terms 2/15, n60. The historical payment patterns of its customers are as follows: 40 percent of customers pay in 15 days. 57 percent of customers pay in 60 days. 3 percent of customers pay in 100 days. Annual sakes are $730,000. Assume there are 365 days in a year. a. Calculate the average collection period (ACP)? a. What is the accounts receivable (AR) assuming all goods are sold on credit?

Reference no: EM131078034

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