Bird's Nest had net credit sales for the current period of $600,000 and average net receivables were $55,000.What is the days' sales in receivables?

Name: Bird's Nest had net credit sales for the current period of $600,000 and average net receivables were $55,000.What is the days' sales in receivables?
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Question

Quizplus · Accepted Answer

Days' sales in receivables is calculated as (Average Net Receivables / Net Credit Sales) * 365. Here, it is ($55,000 / $600,000) * 365 = 33.42, approximately 33 days.

Bird's Nest Had Net Credit Sales for the Current Period