Please fill all requirements **Distinctive Media Sign Incorporated sells on account. Recently, Distinctive reported the following figures:**| | 2018 | 2017 ||------------------------|---------|---------|| **Net Credit Sales** | $519,350 | $601,500 || **Net Receivables at end of year** | 38,800 | 41,100 |*Read the requirements.*---**Requirement 1.** Compute Distinctive’s days’ sales in receivables for 2018. (Round to the nearest day).First calculate the accounts receivable turnover. (Abbreviations used: AR turn = accounts receivable turnover ratio; Cash = Cash including cash equivalents; ST invest. = short-term investments. Round the accounts receivable turnover ratios to two decimals, X.XX.)**Formula:**\[ AR\ turn = \frac{\text{Net Credit Sales}}{\frac{\text{Net Receivables at end of year (2017) + Net Receivables at end of year (2018)}}{2}} \]\[ 2018 = \frac{\text{Net Credit Sales}}{\text{Average Net Receivables}} \]*Data input fields are provided for the computation of the turnover ratio.*1. Enter Net Credit Sales $ \div $ 2. $ \left(\frac{\text{Net Receivables at the end of 2017} + \text{Net Receivables at the end of 2018}}{2}\right) = \text{Average Net Receivables} $3. Calculate the AR turn = --- Upon determining the accounts receivable turnover ratio, it can be further used to compute the average collection period (days’ sales in receivables):\[ \text{Days' Sales in Receivables} = \frac{365}{\text{AR turn}} \] ### Requirements1. **Compute Distinctive's days' sales in receivables for 2018. (Round to the nearest day.)** 2. **Suppose Distinctive's normal credit terms for a sale on account are 2/10, net 30. How well does Distinctive's collection period compare to the company's credit terms? Is this good or bad for Distinctive?**#### Explanation:- **Day's Sales in Receivables** is a metric that measures how many days, on average, it takes a company to collect its accounts receivable. This is an important aspect of cash flow management in any business.- **Credit Terms "2/10, net 30"** means that a customer can take a 2% discount if the invoice is paid within 10 days; otherwise, the full amount is due within 30 days. ### Instructions:- Use the given financial data for Distinctive to calculate the days' sales in receivables for the year 2018.- Compare the calculated collection period with Distinctive's credit terms to determine if the company's collection period is within the expected range.- Evaluate whether the collection period is advantageous or disadvantageous for Distinctive’s financial health.### Actions:- Click **Print** to print the requirements.- Click **Done** to proceed once the calculations are completed.

The account receivable turnover is used to evaluate the efficiency of the entity in collecting…

Distinctive Media Sign Incorporated sells on account. Recently, Distinctive reported the following figures: Net Credit Sales Net Receivables at end of year Read the requirements. 2018 $ 519,350 $ 38,800 2017 601,500 41,100 Requirement 1. Compute Distinctive's days' sales in receivables for 2018. (Round to the nearest day.) First calculate the accounts receivable turnover. (Abbreviations used: AR turn = accounts receivable turnover ratio; Cash Cash including cash equivalents; ST invest. = short-term investments. Round the accounts receivable turnover ratios to two decimals, X.XX.)