Boom Lay Corp. has a current accounts receivable balance of $346,800. Credit sal

Question

Boom Lay Corp. has a current accounts receivable balance of $346,800. Credit sales for the year just ended were $4,369,680.

  

  

  

What is the days' sales in receivables? (Use 365 days a year. Round your answer to 2 decimal places. (e.g., 32.16))

  

  

How long did it take on average for credit customers to pay off their accounts during the past year? (Use 365 days a year. Round your answer to 2 decimal places. (e.g., 32.16))

  

Boom Lay Corp. has a current accounts receivable balance of $346,800. Credit sales for the year just ended were $4,369,680.

Explanation / Answer

Accounts Receivable Turnover = Credit Sales / Receivable.

Average Collection Period = 365 Days in the Year / Turnover Ratio.

Sales in receivables = Receivables / Credit Sales x 365

Credit Sales 4369680 Receivables 346800 Receivables Turnover 12.6 Sales in Receivables 28.97 Average collection period 28.97

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.