Peterboro Supply has a current accounts receivable balance of $391,648.Credit sales for the year just ended were $5,338,411.How long did it take on average for credit customers to pay off their accounts during the past year?
A)24.78 days
B)26.78 days
C)29.09 days
D)31.15 days
E)33.33 days

Question

Quizplus · Accepted Answer

Accounts receivable turnover = $5,338,411/$391,648 = 13.63064; Days' sales in receivables = 365/13.63064 = 26.78 days

Peterboro Supply Has a Current Accounts Receivable Balance of $391,648