# 游戏电竞官网外围

## Definition of Accounts Receivable Collection Period

The accounts receivable collection period is similar to the days sales outstanding or the days sales in accounts receivable .

The accounts receivable collection period is calculated as follows:

1. Divide company's net credit sales for the year by 360 or 365 days = average credit sales per day
2. Divide the average balance in Accounts Receivable during the year by #1

An alternative calculation is to use the accounts receivable turnover ratio .

## Example of Accounts Receivable Collection Period

Assume a corporation had net credit sales of \$360,000 during the past year and its accounts receivable balance was on average \$40,000. The average credit sales per day were approximately \$1,000 per day (\$360,000 of annual credit sales divided by 360 or 365 days per year). The average accounts receivable balance of \$40,000 divided by \$1,000 of credit sales per day = 40 days.

Calculating the accounts receivable collection period using the accounts receivable turnover ratio, you first determine the accounts receivable turnover ratio. The calculation is \$360,000 of net credit sales divided by the average accounts receivable balance of \$40,000 = 9. Next, divide 360 days per year by the accounts receivable turnover of 9 = 40 days.

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