Ask Question
25 September, 09:27

A company has net credit sales of $ 1 comma 300 comma 000 , beginning net accounts receivable of $ 270 comma 000 , and ending net accounts receivable of $ 202 comma 000. What is the days' sales in accounts receivable? (Use 365 days in calculations as needed. Round any intermediate calculations to two decimal places, and your final answer to the nearest whole day.)

+5
Answers (1)
  1. 25 September, 09:41
    0
    66.36 days

    Explanation:

    Calculation of the days' sales in accounts receivable.

    Using this formula

    Accounts Receivable Turnover Ratio = [Net credit sales (Beginning net account receivable + Ending net account receivable) / 2) ]

    Let plug in the formula

    [$1,300,000 / ($270,000 + $202,000) / 2) ]

    $1,300,000 / ($472,000/2)

    =$1,300,000/236,000

    =$5.50 Days' sales in receivables

    = 365/5.5

    = 66.36 days

    Therefore the days' sales in accounts receivable will be 66.36 days
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company has net credit sales of $ 1 comma 300 comma 000 , beginning net accounts receivable of $ 270 comma 000 , and ending net accounts ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers