A company reports the following: Sales $591,300 Average accounts receivable (net) 65,700 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days
I know in order to find the accounts receivables analysis you first divide sales by the average accounts receivables and the average
Accounts receivable turnover is the ratio of sales to the average accounts receivable in order to find the effectiveness of a entity in collecting the debts.
Number of days sales in receivables is the average number of days taken by a entity to collect its receivables in a year
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