Question

the perry company reported accounts receivable, net of $64,600 at the beginning of the year and $73,600 at the end of the year. if the company's net sales revenue during the fourth year was $896,000, what are the days to collect during year?(round all calculations to 1 decimal place.)

Answer 1

To calculate the days to collect during the year, find the average accounts receivable and divide it by the average daily sales.

Step-by-step explanation:

To calculate the days to collect during the year, we need to find the average accounts receivable for the year and divide it by the average daily sales. First, let's calculate the average accounts receivable:

Beginning accounts receivable + Ending accounts receivable / 2 = (64600 + 73600) / 2 = 68200

Next, let's calculate the average daily sales:

Net sales revenue / 365 = 896000 / 365 = 2454.79

Finally, let's calculate the days to collect:

Average accounts receivable / Average daily sales = 68200 / 2454.79 = 27.8 (rounded to 1 decimal place)