Question

The Perry Company reported Accounts Receivable, Net of $65,800 at the beginning of the year and $73,000 at the end of the year. If the company's net sales revenue during the fourth year was $884,000, what are the days to collect during year? (Round all calculations to 1 decimal place.)

Answer 1

Answer:

28.6 days

Explanation:

Avg Receivables= Beg Receivables + Ending Receivables /2

=65,800+73,000/2

=$138,800/2

=$69,400

Receivable turn over= Net Sales/ Avg Receivables

=884,000/69,400

=12.74

days to collect during year= 365/ Receivable turn over =365/12.7

=28.6 days