Question

Assuming Year 2 net credit sales totaled $122,000, what was the company's average days to collect receivables

Answer 1

44.88 days

Step-by-step explanation:

Note: The full question is attached

Average amount of accounts receivables = ($16,000+$14,000)/2

Average amount of accounts receivables = $15,000

Average days to collect receivables = Days * AR / Credit sales

= 365 * $15,000 / $122,000

= 44.87704918032787 days

= 44.88 days