Question

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.)

Answer 1

137.89 days

Step-by-step explanation:

Days' sales receivables = (Accounts Receivables / Net Credit Sales) *365

Accounts Receivables = $ 680,000

Net Credit Sales = $ 1,800,000

Days' sales receivables = $680,000 / $ 1,800,000 * 360 days

=137.88888

= 137.89 days

The​ days' sales in​ receivables is 137.89 days