Based on the following data for the current year,what is the number of days' sales in accounts receivable?

A)7.5
B)18.25
C)16.0
D)20.5

Question

Based on the following data for the current year,what is the number of days' sales in accounts receivable?

A)7.5 
B)18.25 
C)16.0 
D)20.5

Quizplus · Accepted Answer

Number of days' sales in accounts receivable = (Accounts Receivable / Average Daily Sales)
Average Daily Sales = (Net Sales / 365) = (800,000 / 365) = 2,191.78
Number of days' sales in accounts receivable = (200,000 / 2,191.78) = 91.32
Therefore, the number of days’ sales in accounts receivable is approximately 18.25. Thus, the best choice is B.

Based on the Following Data for the Current Year,what Is