A company reports the following:Sales $4,000,000Average accounts receivable (net) 200,000Determine (a) the accounts receivable turnover and (b) the number of days’ sales in receivables. Round to one decimal place.

A company reports the following:Sales $4,000,000Average accounts receivable (net) 200,000Determine (a) the accounts receivable turnover and (b) the number of days’ sales in receivables. Round to one decimal place.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company reports the following:
Sales $4,000,000
Average accounts receivable (net) 200,000
Determine (a) the accounts receivable turnover and (b) the number of days’ sales in receivables. Round to one decimal place.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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