Candle Shop,Inc.has net sales on account of $1,700,000.The average net accounts receivable are $630,000.Calculate the days' sales in receivables.(Use 365 days for any calculations.Round any intermediate calculations and your final answer to two decimal places.)
A) 328.50 days
B) 365.00 days
C) 135.19 days
D) 2.70 days

Question

Quizplus · Accepted Answer

Accounts receivable turnover ratio = Net credit sales / Average net accounts receivable = $1,700,000 / $630,000 = 2.70
Days' sales in receivables = 365 / Accounts receivable turnover ratio = 365 / 2.70 = 135.19