Ninety-percent of Vogel Bird Seed's total sales of $600,000 is on credit. If its year-end receivables turnover is 5,

73 days and $108,000 is the correct answer.

given total sales =600,000 cr sales percentage =90% RTO =5 Annual cr sales in days =365 REQUIRED ACP A/R Cr sales =600,000 *90% =540,000 Avg. cr. sales/day = annual cr. sales ÷365 =1479.45 A/R = Cr. sales ÷ RTO A/R =540,000/5 =108,000 ACP = A/R ÷ Avg. cr. sales per day ACP =108,000 ÷147945 =73 days Therefore, the correct answer for your question is choice C (73 days and $10800)

CORRECT ANSWER IS73 days &120000

The answer is73 days and $108,000 respectively.

Correct answer is73 days and108000

5 = (600,000 @90%) / Avg A/cs Receivable 

Avg A/cs Receivable =540,000 /5 

So, Avg Receivables =108,000

 

And Average Collection Period is

                              =108,000 /540,000 *365

                              =73 Days 

 

73 days and $108,000 Respectively. 

>>>>>>>>>.. the answer will be73 days and $108,000.

 

Agree with all experts

Thank you 

73 days and $108,000>><<<>><<>>

73 days and108000>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

RTD =365 days/5 =73days

(.9)$600,000 = $540.000 in credit sales

RT =5 = $540,000 / Receivables

Therefore , Receivables = $540,000 /5 = $108,000

 

Correct answer is =  73 days and $108,000.