Asked by Roberta Carubia on Jul 13, 2024
Verified
At the end of the current period,a company reported $725,000 in net credit sales and $100,000 in ending accounts receivable.Calculate this company's days' sales uncollected at the end of the current period.
Days' Sales Uncollected
A fiscal indicator quantifying the mean span of days required for a business to receive payment post a sale transaction.
Net Credit Sales
Net Credit Sales refer to the total value of sales made on credit during a specific period, minus returns and allowances.
Accounts Receivable
The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.
- Determine and scrutinize the ratio of days' sales uncollected to appraise the efficacy of an organization's receivables handling.
Verified Answer
Days' Sales Uncollected Ratio = $100,000/$725,000 * 365 = 50.3 days
Learning Objectives
- Determine and scrutinize the ratio of days' sales uncollected to appraise the efficacy of an organization's receivables handling.
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