multiple - choice question the following annual account balances are taken from abc co at year end. current…

multiple - choice question the following annual account balances are taken from abc co at year end. current year previous year accounts receivable $5,500 $4,000 net sales $58,000 $55,000 days sales uncollected? days? days calculate abc co.s days sales uncollected for the current year. 34.6 days 26.54 days 38.49 days 15.06 days

multiple - choice question the following annual account balances are taken from abc co at year end. current year previous year accounts receivable $5,500 $4,000 net sales $58,000 $55,000 days sales uncollected? days? days calculate abc co.s days sales uncollected for the current year. 34.6 days 26.54 days 38.49 days 15.06 days

Answer

Explanation:

Step1: Calculate the daily sales

Daily sales = Net Sales / 365 Daily sales = $\frac{58000}{365}\approx158.904$

Step2: Calculate days sales uncollected

Days sales uncollected = Accounts Receivable / Daily sales Days sales uncollected = $\frac{5500}{158.904}\approx34.6$

Answer:

34.6 days