A company has net credit sales of $1,225,000, beginning net accounts receivable of $310,000, and ending net accounts receivable of $250,000. What is the days' sales in accounts receivable? (Round to the nearest whole day.) a. 92 days b. 83 days c. 97 days d. 89 days

A company has net credit sales of $1,225,000, beginning net accounts receivable of $310,000, and ending net accounts receivable of $250,000. What is the days' sales in accounts receivable? (Round to the nearest whole day.) a. 92 days b. 83 days c. 97 days d. 89 days

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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What is the days sales in accounts receivable?

A company has net credit sales of $1,225,000,
beginning net accounts receivable of $310,000,
and ending net accounts receivable of $250,000.
What is the days' sales in accounts receivable?
(Round to the nearest whole day.)
a. 92 days
b. 83 days
c. 97 days
d. 89 days

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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What is the days sales in account receivable?