Horngren's Accounting (11th Edition)
Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 17, Problem 6QC
To determine

Days’ sales in the receivable ratio: This ratio is calculated to know the number of days required to collect the payment for credit sales by a company. It is also called average collection period. It reflects the quality of the debtors or accounts receivable a company has. The low value of this ratio reflects that a company is able to convert its credit sale into cash in fewer days.

To Identify: The correct value for L Company’s days’ sales in receivable ratio during 2019.

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Horngren's Accounting (11th Edition)

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