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1 June, 06:39

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.)

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  1. 1 June, 07:52
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    137.89 days

    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
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