Z-Mart had $12,000 in accounts receivable and $320,000 in net sales for the period. To one decimal, Z-Mart's days' sales uncollected was 13.7 days.

Question

Quizplus · Accepted Answer

Days' Sales Uncollected = (Accounts Receivable / Net Sales) * Number of Days in the Period
Days' Sales Uncollected = (12,000 / 320,000) * 365
Days' Sales Uncollected = 13.65625 or 13.7 rounded to one decimal place. Therefore, the statement is true.

Z-Mart Had $12,000 in Accounts Receivable and $320,000 in Net