Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Explore thousands of questions and answers from a knowledgeable community of experts ready to help you find solutions. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Senath Company's annual report reveals net credit sales of $266,000 and average accounts receivable of $46,000. The report also shows an average inventory balance of $16,500 and cost of goods of $265,000. Based on this information (treat any partial day as a whole day) :_________

a. the average number of days to collect receivables is 6.
b. the average number of days to collect receivables is 64.
c. the accounts receivable turnover is 16.
d. the accounts receivable turnover is 15.


Sagot :

Zviko

Answer:

b. the average number of days to collect receivables is 64.

Explanation:

Average number of days to collect receivables = Accounts Receivable ÷ ( Sales / 365)

                                                                               = $46,000 ÷ ($266,000 / 365)

                                                                                = 63.10 or 64

Conclusion

The average number of days to collect receivables is 64

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.