Question Help Net sales total 693500 Beginning and ending ac

Question Help Net sales total $693,500. Beginning and ending accounts receivable are $50,000 and $45,000, respectively. Calculate days\' sales in receivables. O A. 22 days O B. 31 days O C. 24 days D. 25 days Click to select your answer

Solution

D. 25 days

Days\' sales in receivables = [($50,000 + $45,000) / 2] / ($693,500 / 365)

Days\' sales in receivables = $47,500 / 1,900

Days\' sales in receivables = 25 days