Answer:
The firm's accounts receivable period is 23.25 days
Explanation:
Accounts receivable period = 365 / Account receivable turnover ratio
When Account receivable turnover ratio = Net sales / Account receivables
Account receivable turnover ratio = 118,280 * 365 days/ 2,750,000
Account receivable turnover ratio = 15.698
Hence, Account receivable period = 365 / 15.698
Account receivable period = 23.25 days
