e-Shop, Inc. has net sales on account of $1,500,000. The average net accounts receivable are $610,000. Calculate the days' sales in receivables. (Round your answer to two decimal places.)
A) 897.90 days
B) 365.00 days
C) 148.37 days
D) 2.46 days
C .C)
Accounts receivable turnover ratio = Net credit sales / Average net accounts receivable = $1,500,000 / $610,000 = 2.46
Days' sales in receivables = 365 / Accounts receivable turnover ratio = 365 / 2.46 = 148.37
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