Candle Shop, Inc. has net sales on account of $1,700,000. The average net accounts receivable are $630,000. Calculate the days' sales in receivables. (Use 365 days for any calculations. Round any intermediate calculations and your final answer to two decimal places.) 328.50 days 365.00 days 135.19 days 2.70 days

135.19 days

Explanation:

Given that

Accounts Receivables = $630,000

Net Credit Sales = $1,700,000

The computation of days' sales in receivables is shown below:-

= (Accounts Receivables : Net Credit Sales) * 365

= ($630,000 : $1,700,000) * 365

= 135.19 days

As per the question the calculation of days' sales in receivables we simply divide accounts Receivables from net credit sales and multiply with number of days.