Answer (C) is correct . The accounts receivable turnover period, also called the days’ sales in receivables, equals the number of days in the year divided by the accounts receivable turnover ratio. Broomall’s turnover ratio is 10 times {$220 net credit sales ÷ [($24,000 + $20,000) ÷ 2] average receivables balance}, generating a turnover period of
Answer (A) is incorrect because A period of 26.1 days results from using accounts payable instead of accounts receivable.
Answer (B) is incorrect because A period of 33.2 days results from using ending, rather than average, receivables in the denominator.
Answer (D) is incorrect because A period of 39.8 days results from using beginning, rather than average, receivables in the denominator.
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Using a 365-day year, Broomall’s accounts receivable turnover period is