A rough guideline states that for a company with no discounts offered, days' sales uncollected should not exceed 1 1/3 times the days in its credit period.

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This is a correct guideline for managing accounts receivable. It suggests that a company should strive to collect payment within its credit period or in a reasonably short period of time after that, typically within 45 days or less. If the days' sales uncollected exceeds 1 1/3 times the credit period, it may signal that the company is having difficulty collecting payments which could lead to cash flow problems.

A Rough Guideline States That for a Company with No