Calculate Days in Accounts Receivable. Total accounts receivable over 90 days: $18,105.50 A/R: $67,901 Allowance: ($4,521) Gross Charges: $587,857
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DAR is a financial metric that measures the average number of days it takes a company to collect payment after a sale has been made. It's a crucial indicator of the efficiency of a company's credit and collection policies. Show more…
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Accounts Receivable Analysis The company reports the following: Sales: $1,092,080 Average accounts receivable (net): $49,640 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. (a) Accounts receivable turnover: Accounts receivable turnover = Sales / Average accounts receivable (net) Accounts receivable turnover = $1,092,080 / $49,640 (b) Number of days' sales in receivables: Number of days' sales in receivables = 365 / Accounts receivable turnover
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