Question

Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)? Assume 365 days a year. Sales on account during year $567,159 Cost of merchandise sold during year 171,674 Accounts receivable, beginning of year 45,955 Accounts receivable, end of year 48,787 Merchandise inventory, beginning of year 81,452 Merchandise inventory, end of year 109,404 a. 70.4 days b. 110.5 days c. 30.5 days d. 61.4 days

          Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)?
Assume 365 days a year.
Sales on account during year
$567,159
Cost of merchandise sold during year
171,674
Accounts receivable, beginning of year
45,955
Accounts receivable, end of year
48,787
Merchandise inventory, beginning of year
81,452
Merchandise inventory, end of year
109,404
a. 70.4 days
b. 110.5 days
c. 30.5 days
d. 61.4 days

Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)?
Assume 365 days a year.
Sales on account during year
567,159
Cost of merchandise sold during year
171,674
Accounts receivable, beginning of year
45,955
Accounts receivable, end of year
48,787
Merchandise inventory, beginning of year
81,452
Merchandise inventory, end of year
109,404
a. 70.4 days
b. 110.5 days
c. 30.5 days
d. 61.4 days

Added by Claudia D.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Tsungirirai Musekiwa

06/07/2022

Step 1

To calculate the average accounts receivable, we need to find the average of the beginning and ending accounts receivable. Average accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2 Average accounts receivable = ($45,955 + Show more…

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Texts: Based on the following data for the current year, what is the number of days' sales in receivables rounded to one decimal place? Assume 365 days a year. Sales on account during year: $567,159 Cost of merchandise sold during year: $171,674 Accounts receivable, beginning of year: $45,955 Accounts receivable, end of year: $48,787 Merchandise inventory, beginning of year: $81,452 Merchandise inventory, end of year: $109,404 a) 70.4 days b) 110.5 days c) 6.4 days