Net credit sales total 1,890,000 beginning and ending accounts receivable are 73
ID: 2545937 • Letter: N
Question
Net credit sales total 1,890,000 beginning and ending accounts receivable are 73,060 7000 calculate days sales outstanding (round interim calculations to two decimal places and the days sales outstanding up to the next whole day). A. 20 days B. 14 days C. 13 days especti ely Caliate days sales outstanding (Round inte in calc lato s to t o de inal places, XXXX and the days Net credit sales total $890,000 Beg ning and ending accounts receivable are $73,000 and $67.000 oulstanding (DS0) up to the next whole day) OA. 20days OB. 14days oc. 13days O D. 11 days Click to select your answer TOSHIBAExplanation / Answer
Average AR=(Beginning AR+Ending AR)/2
=(73000+67000)/2=$70000
DSO=(Average AR/Net credit sales)*365 days
=(70000/1,890,000)*365 days
=14 days(Approx).