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28 October, 06:38

The Perry Company reported Accounts Receivable, Net of $62,800 at the beginning of the year and $74,500 at the end of the year. If the company's net sales revenue during the fourth year was $914,000, what are the days to collect during year

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  1. 28 October, 06:42
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    Answer: 27.14 days

    Explanation:

    To calculate the Days to Collect during the the Year we will use the following formula,

    = Average Accounts Receivables * 365/Sales

    This is assuming a 365 year.

    Average Accounts Receivables is calculated as

    = Ending Receivables + Begining Receivables / 2

    = 74,500 + 62,800 / 2

    = $68,650 is the Average Inventory

    Plugging in the figures then we have,

    = 68,650 * 365/914,000

    = 27.4149343545

    = 27.14 days.

    27.14 days to collect during the year.
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Home » Business » The Perry Company reported Accounts Receivable, Net of $62,800 at the beginning of the year and $74,500 at the end of the year. If the company's net sales revenue during the fourth year was $914,000, what are the days to collect during year
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