Question

barga company's net sales for year 1 and year 2 are $730,000 and $1,095,000, respectively. its year-end balances of accounts receivable follow: year 1, $65,000; and year 2, $123,000. a. complete the below table to calculate the days' sales uncollected at the end of each year.

Answer 1

Year 1 = 35.23 days

Year 2 = 44.64 days

What are net sales?

• Net sales are calculated by deducting appropriate sales returns, allowances, and discounts from gross revenue.
• Net sales costs have an impact on a company's gross profit and gross profit margin, but net sales exclude the cost of goods sold, which is typically a key driver of gross profit margins.
• Net sales are operating revenues obtained by a corporation for selling its products or performing its services in bookkeeping, accounting, and financial accounting.
• They are recorded directly on the income statement as Sales or Net sales and are also known as revenue.

So, Days' Sales Uncollected = Accounts receivable / Net Sales * Days

Year 1 = $64,000 / $663,000 * 365 days = 35.23 days

Year 2 = $91,000 / $744,000 * 365 days = 44.64 days

Therefore,

Year 1 = 35.23 days

Year 2 = 44.64 days

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The question you are looking for is here:

Barga Co.'s net sales for Year 1 and Year 2 are $663,000 and $744,000, respectively. Its year-end balances of accounts receivable follow Year 1, $64,000; and Year 2, $91,000. Complete the below table to calculate the days' sales uncollected at the end of each year.

Days' Sales Uncollected

Choose Denominator: / Choose Numerator: * Days = Days' Sales Uncollected

Year 1: days

Year 2: days