The following information is taken from Hogan Company's December 31 balance sheet:
If net credit sales and cost of goods sold for the current year were $612,000 and $367,200,respectively,the firm's days' sales uncollected for the year is:

Question

The following information is taken from Hogan Company's December 31 balance sheet:
 If net credit sales and cost of goods sold for the current year were $612,000 and $367,200,respectively,the firm's days' sales uncollected for the year is:

Quizplus · Accepted Answer

Days' Sales Uncollected Ratio = Ending Accounts Receivable/Net Sales * 365
Days' Sales Uncollected Ratio = $70,422/$612,000 * 365 = 42 days

The Following Information Is Taken from Hogan Company's December 31