TSN had $12,000 in accounts receivable and $320,000 in net sales for the period.Its days' sales uncollected was 13.7 days.

Question

Quizplus · Accepted Answer

Days' sales uncollected = (Accounts receivable / Net sales) x number of days in the period
13.7 = (12,000 / 320,000) x number of days in the period
Solving for the number of days in the period:
13.7 x 320,000 / 12,000 = 366.67
Therefore, TSN had $12,000 in accounts receivable and $320,000 in net sales with a days' sales uncollected of 13.7 days, which is true.

TSN Had $12,000 in Accounts Receivable and $320,000 in Net