DelRio Electronics, a retail electronics company, had net sales of $720,000 duri
ID: 2396234 • Letter: D
Question
DelRio Electronics, a retail electronics company, had net sales of $720,000 during the last fiscal year, with an average accounts receivable balance of $65,000. DelRio has been wondering how many days of sales are normally tied up in accounts receivables and has asked you, the trusty accountant, to figure this out.
Please calculate the number of days sales in receivables (also known as days sales uncollected.)
About 145.49 days
About 32.95 days
180 days roughly
Nearly 77.5 days
A.About 145.49 days
B.About 32.95 days
C.180 days roughly
D.Nearly 77.5 days
Explanation / Answer
Days sales in receivables=(average accounts receivable/net sales)*365 days
=(65000/720000)*365 days
Which is equal to
=32.95 days (approx).
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