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The Average Collection Period measures the average number of days it takes for the company to collect revenue from its credit sales.The Average Daily Sales is the Net Sales divided by 365 days in the year.he Average Collection Period measures the average number of days it takes for the company to collect revenue from its credit sales.
The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and multiplying the quotient by the number of days in the period. Calculated as: Where: Days = Total amount of days in period. AR = Average amount of accounts receivables.