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18 May, 06:47

e-Shop, Inc. has net sales on account of $1,500,000. The average net accounts receivable are $610,000. Calculate the days' sales in receivables. (Round your answer to two decimal places.) A. 897.90 daysB. 148.37 daysC. 365.00 daysD. 2.46 days

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  1. 18 May, 07:13
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    The days' sales in receivables are B. 148.37 days

    Explanation:

    The days' sales in receivables is calculated by using following formula:

    The number of days' sales in receivables = 365/Accounts receivable turnover

    In there:

    Accounts receivable turnover = Net Credit Sales / Average Accounts Receivable

    E-Shop, Inc. has net sales on account of $1,500,000 and average net accounts receivable of $610,000.

    Accounts receivable turnover = $1,500,000/$610,000 = 2.46 times

    The number of days' sales in receivables = 365/2.46 = 148.37 days
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Home » Business » e-Shop, Inc. has net sales on account of $1,500,000. The average net accounts receivable are $610,000. Calculate the days' sales in receivables. (Round your answer to two decimal places.) A. 897.90 daysB. 148.37 daysC. 365.00 daysD. 2.46 days
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