Ask Question
13 September, 13:13

A company reports the following:

Sales $3,150,000

Average accounts receivable (net) 210,000

Determine:

(a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.

+3
Answers (1)
  1. 13 September, 13:16
    0
    a. 15 times

    b. 24.3 days

    Explanation:

    The computation is shown below:

    a. Accounts receivable turnover

    Account receivable turnover ratio = Net credit sales : Average accounts receivable

    = $3,150,000 : $210,000

    = 15 times

    b. Number of days sales in receivables = Total number of days in a year : accounts receivable turnover ratio

    = 365 days : 15 times

    = 24.3 days
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company reports the following: Sales $3,150,000 Average accounts receivable (net) 210,000 Determine: (a) the accounts receivable turnover ...” 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