Chapter 7, Problem 7.26E

To determine

Accounts Receivable Turnover:

The accounts receivable turnover ratio determines the efficiency of a company to use its assets and issue the credit to the customers and collects the funds from them. The accounts receivable turnover is determined by dividing the credit sales by the average accounts receivable of that accounting period.

Days’ sales uncollected

Days’ sales uncollected (Average collection period): Days’ sales uncollected indicates that on average, how long it takes to collects receivable. It is calculated dividing the number of days in a year by the receivable turn over.

$\text{Days' sales uncolleced=}\frac{\text{365}\text{days}}{\text{Receivable turnover}}$

To Compute: The amount of sales for 2016