e-Shop,Inc.has net sales on account of $1,600,000.The average net accounts receivable are $620,000.Calculate the days' sales in receivables.(Round any intermediate calculations and your final answer to two decimal places. )
A)313.90 days
B)365.00 days
C)141.47 days
D)2.58 days

Question

Quizplus · Accepted Answer

C)Accounts receivable turnover ratio = Net credit sales / Average net accounts receivable = $1,600,000 / $620,000 = 2.58
Days' sales in receivables = 365 / Accounts receivable turnover ratio = 365 / 2.58 = 141.47

E-Shop,Inc