This number is then multiplied by. The average collection period formula is. Average Collection Period Formula And Calculator Excel Template Divide the sum by the net credit sales. . Receivable turnover in days 365 Receivable turnover ratio Determining the accounts receivable turnover in days for Trinity Bikes Shop in the example above. Since this receivables turnover was for a prior year youll have to substitute 365 for days Period 36510 If youre computing for six months substitute the day figure with 180 or 90 if youre. Average Collection Period Average Accounts Receivable Net Credit Sales x Days in Period The days in the period can be any number of days. Example of Average Collection. Average collection periodfrac accounts receivable revenuedays in period average collection period revenueaccounts receivable. However since you need to calculate the. Average Collection Period Average Accounts Receivable N...
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