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Essence of Skunk Fragrances, Ltd., sells 8,500 units of its perfume collection each year at a price per unit of $610. All sales are on credit with...

Essence of Skunk Fragrances, Ltd., sells 8,500 units of its perfume collection each year at a price per unit of $610. All sales are on credit with terms of 1.5/10, net 90. The discount is taken by 50 percent of the customers.

  
 

Calculate the average collection period. (Round your answer to 2 decimal places (e.g., 32.16).)

  
 

  Average collection period    days  

     
 

What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 3 decimal places (e.g., 32.161).)

   
 

  Receivables turnover    times  


 

What is the amount of the company’s average accounts receivable? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

  
 

  Average accounts receivable $   


Top Answer

net credit sales=8500x610=5185000 net accounts... View the full answer

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