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11 A company has annual sales of $5,000,000 and its average daily accounts receivable is $370,000....

11 A company has annual sales of $5,000,000 and its average daily accounts receivable is $370,000. What is the average days' sales in receivables? Assume 365 days per year. HINT: compute first the accounts receivable turnover. Then, adjust that number based on the 265-day year to get the average days’ sales

A               27.01                       B               16                              C               26                              d               18

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Answer #1

Ans A) 27.01

average days' sales in receivables = Accounts Receivable / Total Credit sales * No of Days

                                                     = 370000 / 5000000 * 365

                                                     = 27.01

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