Question

Senath Company’s annual report reveals net credit sales of $240,000 and average accounts receivable of $20,000. The report also shows an average inventory balance of $10,000 and cost of goods of $200,000. Based on this information,the accounts receivable turnover is __________.a. the average number of days to collect receivables is 12.b. the average number of days to collect receivables is 31.c. the accounts receivable turnover is 20.d. the accounts receivable turnover is 19.

Answer 1

d

Step-by-step explanation:

Answer 2

Option B - The average number of days to collect receivables is 31

Step-by-step explanation:

Accounts receivable turnover = net credit sales / average accounts receivable

=240000/20000

= 12

Average number of days to collect receivable = 365/12

=31