Average collection period for accounts receivable


Allen Company's average collection period for accounts receivable was 40 days last year, but increased to 60 days this year. Which of the following would most likely account for this change?

a) a decrease in accounts receivable relative to sales.

b) a decrease in sales.

c) a relaxation of credit policies.

d) an increase in sales.

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Accounting Basics: Average collection period for accounts receivable
Reference No:- TGS092503

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