A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)
A) 8.0 days.
B) 7.4 days.
C) 45.8 days.
D) 58.9 days.
E) 45.2 days.

Question

Quizplus · Accepted Answer

Days' sales uncollected is calculated as (Ending Accounts Receivable / Net Sales) * 365. So, ($2,700 / $21,500) * 365 = 45.8 days.

A Company Had Net Sales of $21,500 and Ending Accounts