7-10. Continued Accounts receivable b. Average collection period Average daily credit sales $220,000 $960,000/120 $220.000 $8000 275da c. Yes, the average collection of 27.5 days is less than 30 days d. No. The aging Schedule provides additional insight that 60 percent of the accounts receivable are over 30 days old e. It goes beyond showing how many days of credit sales accounts receivables represent, to indicate the distribution of accounts receivable between various time frames CopyrightC 2005 by The McGray-Hill Companies, Inc.Copyright © 2005 by The McGraw-Hill Companies, Inc. S-252 7-10. Continued 27.5 days $8,000 $220,000 $960,000/120 $220,000 Average daily credit sales Accounts receivable b. Average Collection Period = = = = c. Yes, the average collection of 27.5 days is less than 30 days. d. No. The aging schedule provides additional insight that 60 percent of the accounts receivable are over 30 days old. e. It goes beyond showing how many days of credit sales accounts receivables represent, to indicate the distribution of accounts receivable between various time frames