Enter the total number of days of a collection period, the total net receivables, and total net credit sales into the calculator. The calculator will determine the average collection period.

## Average Collection Period Formula

The follow equation is used to calculate the average collection period.

ACP = D× NR / NCS

- Where ACP is the average collection period
- D is the total number of days
- NR is the average net receivables
- NCS is the net credit sales

## Average Collection Period Definition

An average collection period is the average time it would take for the net receivables to be equal to the net credit sales.

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