A company has net credit sales of $2,050,000, a beginning balance of net receivables of $207,000, and an ending balance of net receivables of $253,000. What is the company's days' sales outstanding? (Round any intermediary calculations to two decimal places and your final answer to the nearest day.)

Question

Quizplus · Accepted Answer

Days' Sales Outstanding (DSO) is calculated as: (Average Accounts Receivable / Net Credit Sales) * 365. The average accounts receivable is ($207,000 + $253,000) / 2 = $230,000. DSO = ($230,000 / $2,050,000) * 365 = 40.98, which rounds to 41 days.

A Company Has Net Credit Sales of $2,050,000, a Beginning