Candle Shop, Inc. has net sales on account of $1,800,000. The average net accounts receivable are $680,000. Calculate the days' sales in receivables.(Use 365 days for any calculations. Round any intermediate calculations and your final answer to two decimal places.)

Question

Quizplus · Accepted Answer

Days' sales in receivables can be calculated using the formula: 
Days' sales in receivables = (Accounts Receivable / Net Sales) x 365

Substituting the given values: 
Days' sales in receivables = (680,000 / 1,800,000) x 365 
= 0.3778 x 365 
= 137.74 days

Therefore, the best choice is C.