A company has net credit sales of $2,000,000,a beginning balance of net receivables of $202,000,and an ending balance of net receivables of $245,000.What is the company's days' sales in receivables (rounded)?

Question

Quizplus · Accepted Answer

Days' Sales in Receivables = (Ending Balance of Net Receivables ÷ Net Credit Sales) x Number of Days in Period
= ($245,000 ÷ $2,000,000) x 365
= 44.8 days, which rounds to 41 days (nearest whole number). Therefore, the correct answer is C, 41 days.

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