The Perry Company reported Accounts Receivable,Net of $66,600 at the beginning of the year and $72,600 at the end of the year.If the company's net sales revenue during the fourth year was $876,000,what are the days to collect during year? (Round all calculations to 1 decimal place. )

Question

Quizplus · Accepted Answer

Receivables turnover ratio = Net sales ÷ Average net accounts receivable
= $876,000 ÷ [($66,600 + $72,600)÷ 2] = 12.6 times (rounded)
Days to Collect = 365 ÷ Receivables turnover ratio
= 365 ÷ 12.6 = 29.0 days

The Perry Company Reported Accounts Receivable,Net of $66,600 at the Beginning