Willow Manufacturing had net Accounts Receivable of $600,000 at the beginning of the year and $740,000 at the end of the year.Net Sales Revenue for 2019 was $5,200,000.What is the days to collect from customers?
A)60.00
B)42.12
C)51.94
D)47.03

Question

Quizplus · Accepted Answer

Days to collect from customers = 365 ÷ Receivables Turnover Ratio
Receivables Turnover Ratio = Net Sales Revenue ÷ Average Net Receivables
= 365 ÷ [$5,200,000 ÷ ($600,000 + $740,000)÷ 2] = 47.03 days

Willow Manufacturing Had Net Accounts Receivable of $600,000 at the Beginning