Question 2

The average collection period for Year 2 is 27.1 days.

The average collection period for Year 2 is calculated to be 27.1 days, indicating the average number of days it takes to collect receivables during that year.

A) 19.1

Option A is incorrect because a figure of 19.1 days would suggest a significantly shorter collection period, which does not align with the calculations or the data provided for Year 2.

B) 27.1

Option B is correct as it accurately reflects the average collection period for Year 2, demonstrating that the company took an average of 27.1 days to collect its accounts receivable.

C) 20.8

Option C is incorrect because an average collection period of 20.8 days does not match the calculated figure for Year 2, indicating a miscalculation or misunderstanding of the data.

D) 24.9

Option D is also incorrect as it suggests a collection period that is shorter than the correct 27.1 days, thus failing to accurately represent the average time taken to collect receivables in Year 2.

Conclusion

In summary, the average collection period for Year 2 is definitively 27.1 days, as supported by the relevant calculations. All other options fail to match this figure, highlighting inaccuracies in their representations of the average collection period.