Question

A company had net sales of $30,200 and ending accounts receivable of $4,000 for the current period. Its days' sales uncollected equals:_________ (Use 365 days a year.)a) 7.55 days.b) 59.54 days.c) 63.64 days.d) 48.34 days.e) 40.34 days.

Answer 1

Answer:

d) 48.34 days

Explanation:

Calculation to determine what Its days' sales uncollected equals

Using this formula

Days' sales uncollected=Ending accounts receivable÷Net sales *365 days

Let plug in the formula

Days' sales uncollected=$4,000÷$30,200*365 days

Days' sales uncollected=48.34 days

Therefore Its days' sales uncollected equals:48.34 days