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 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.)

Answer 1

Answer:

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