Answer: 36.5 days
The collection period ratio is calculated as follows: Days in the Year divided by Receivables Turnover (Receivables Turnover = Net Credit Sales divided by Average Accounts Receivable) = the Average Collection Period. (Accounting Principles, Canadian Edition, volume 1, by Weygandt, Kieso, and Trenholm, page 351). So, Receivables Turnover = $50,000 divided by $5,000, which is equal to 10 times. Then, 365 divided by 10 = 36.5.