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24 August, 00:35

The Perry Company reported Accounts Receivable, Net of $65,800 at the beginning of the year and $73,000 at the end of the year. If the company's net sales revenue during the fourth year was $884,000, what are the days to collect during year? (Round all calculations to 1 decimal place.)

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  1. 24 August, 00:47
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    28.6 days

    Explanation:

    Avg Receivables = Beg Receivables + Ending Receivables / 2

    =65,800+73,000/2

    =$138,800/2

    =$69,400

    Receivable turn over = Net Sales / Avg Receivables

    =884,000/69,400

    =12.74

    days to collect during year = 365 / Receivable turn over = 365/12.7

    =28.6 days
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