Receivable Net of 64800 at the beginning of the year and 735

Receivable, Net of $64,800 at the beginning of the year and $73,500 revenue during the fourth year was $894,000, what are the at the end of the year If the company\'s net sales t days to collect during year? (Round your intermedlate calculation and final enswer to 1 dedimal place. Use 365 days in a year 12.2 days. O 28.2 days 30.0 days. O 82 days. Type here to search

Solution

Solution:

Accounts receivables turnover = Net Sales revenue / Average accounts receivables

Average accounts receivables = (Beginning receivables + Ending receivables)/2

= ($64,800 + $73,500) / 2 = $69,150

Accounts receivables turnover = $894,000 / $69,150 = 12.9 times

Nos of days to collect = Nos of days in a year / Accounts receivables turnover

= 365 / 12.9 = 28.2 days

Hence 2nd option is correct.