The Home Supply Co. has a current accounts receivable balance of $300,000. Credit sales for the year just ended were $1,830,000. How many days on average did it take for credit customers to pay off their accounts during this past year?
A)54.29 days
B)56.01 days
C)57.50 days
D)59.84 days
E)61.00 days

Question

Quizplus · Accepted Answer

Receivables turnover = $1,830,000/$300,000 = 6.1 timesDays' sales in receivables = 365/6.1 = 59.84 days