Freeman Co. had net sales of $4.2 million and ending accounts receivable of $0.8 million. Its days' sales uncollected equals:
A) 5.3 days.
B) 69.5 days.
C) 19.2 days.
D) 11.5 days.
E) 292 days.
B) 69.5 days.
Explanation: Days Sales Uncollected Ratio = Ending Accounts Receivable/Net Sales * 365
Days Sales Uncollected Ratio = $0.8 million/$4.2 million * 365 = 69.5 days
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