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lidiya [134]
2 years ago
8

Question Content Area A company reports the following: Sales $1,243,190 Average accounts receivable (net) 94,900 Determine the (

a) accounts receivable turnover, and (b) number of days' sales in receivables. When required, round your answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables fill in the blank 2 days
Business
1 answer:
erastova [34]2 years ago
6 0

Accounts Receivable Turnover is 13.1 and the number of days in sales receivables is 27.8 days which is approx 28 days.

<h3>What is an Accounts Receivable Turnover?</h3>

Accounts Receivable Turnover is a turnover of several times per year a business collects its average accounts receivable.

Given

Sales=$1,243,190 (we assume whole sales on credit bases)

Average Accounts Receivable=$94,900

No of Days in a Year= 365(days)

Required to calculate:

Accounts Receivable Turnover=?

Number of days sales in receiables=?

Calculation of Accounts Receivable Turnover = Sales is divided by the average accounts receivable.

                                                            =$1,243,190/94900

                                                            =13.1 times

Calculation of Number of Days sales in Receivable= Number of Days in Year/ Accounts Receivable Turnover

                            =365/13.1 =28 Days(Approx)

Thus, the Accounts Receivable and a number of days sales in receivables are 13.1  times and 28 days respectively.

Learn more about Accounts Receivable Turnover here:

brainly.com/question/16447941

#SPJ1

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