A company has net credit sales of $1,200,000, beginning net accounts receivable of $290,000, and ending net accounts receivabl

Question

nataly862011 [7]

3 years ago

7

A company has net credit sales of $1,200,000, beginning net accounts receivable of $290,000, and ending net accounts receivabl

e of $201,000. What is the days' sales in accounts receivable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole day.)

Business

1 answer:

7nadin3 [17] · Answer 1 · 2022-04-07T21:57:09+03:00

7nadin3 [17]3 years ago

8 0

Answer:

Days of receivable will be 75 days

Explanation:

We have given net credit sales = $1200000

Net account receivable at the beginning = $290000

And receivable at the ending = $201000

Average receivable $=\frac{290000+201000}{2}=$245500$

Now receivables turnover ratio $=\frac{credit\ sales}{average\ receivable}=\frac{1200000}{245500}=4.888$

Days of receivables = $\frac{365}{4.888}=74.67=75days$

A company has net credit sales of​ $1,200,000, beginning net accounts receivable of​ $290,000, and ending net accounts receivabl

A company has net credit sales of $1,200,000, beginning net accounts receivable of $290,000, and ending net accounts receivabl