The firm’s sales uncollected for the year is 42 days. Therefore, the correct statement is Option C.
The average collection period refers to the average number of days it takes an enterprise to acquire and convert its accounts receivable into cash.
It is one in all six principal calculations used to decide short-time period liquidity, that is, the ability of an organization to pay its bills (current liabilities) as they arrive due.
The complete question is attached as a picture below
[tex]\rm\,Account\, receivable\, turnover\, ratio =\frac{\$612,000}{\$70,422} \\\\Account \,receivable \,turnover \,ratio = 8.69 times\\\\Average \,collection \,period = \dfrac {365}{8.69}\\\\Average \,collection\, period = 42.00230[/tex]
Thus, The firm’s sales uncollected for the year is 42 days. Therefore, the correct statement is Option C.
Learn more about average collection period:
https://brainly.com/question/4661989
#SPJ1
