Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2. (Use 365 days a year.) $$\begin{array} { | l | r | r | }
\hline & \text { Year 2 } &{ \text { Year 1 } } \
\hline \text { Accounts receivable, net } & 86,500 & 82,750 \
\hline \text { Net sales } & 723,000 & 693,000 \
\hline
\end{array}$$
A) 43.9.
B) 43.7.
C) 46.2.
D) 85.4.
E) 42.7.

Question

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2. (Use 365 days a year.) $$\begin{array} { | l | r | r | } 
\hline & \text { Year 2 } &{ \text { Year 1 } } \
\hline \text { Accounts receivable, net } & 86,500 & 82,750 \
\hline \text { Net sales } & 723,000 & 693,000 \
\hline
\end{array}$$
A) 43.9.
B) 43.7.
C) 46.2.
D) 85.4.
E) 42.7.

Quizplus · Accepted Answer

Days' sales uncollected for Year 2 = (Accounts Receivable, Net / Net Sales) x 365
= (86,500 / 723,000) x 365
= 43.7 days.

Refer to the Following Selected Financial Information from Marston Company