e-Ray Ltd has net sales on account of $1,900,000.The average net accounts receivable are $660,000.Calculate the days' sales in receivables.
A)365 days
B)350.4 days
C)126.7 days
D)2.88 days

Question

Quizplus · Accepted Answer

Days' Sales in Receivables = (Average Accounts Receivable / Net Sales) × 365

Days' Sales in Receivables = ($660,000 / $1,900,000) × 365 = 126.7 days

Therefore, the best choice is C.

E-Ray Ltd Has Net Sales on Account of $1,900,000