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A company has a collection period of 20 days, and an average gross accounts receivable of $100,000. What were their net sales?Select answer from the options below$3,650,000$2,000,000$1,825,000 $1,000,000

Question

A company has a collection period of 20 days, and an average gross accounts receivable of 100,000.Whatweretheirnetsales?Selectanswerfromtheoptionsbelow100,000. What were their net sales?Select answer from the options below3,650,0002,000,0002,000,0001,825,000 $1,000,000

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Solution

The question doesn't provide enough information to determine the net sales of the company. The collection period and the average gross accounts receivable can help us determine the accounts receivable turnover, but without knowing the cost of goods sold or the gross profit margin, we can't calculate the net sales. Therefore, none of the options can be selected as the correct answer based on the information provided.

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