The number of days' sales uncollected is used to:
A. Measure how many days of sales remain until the end of the year.
B. Measure the amount of cash sales during a period.
C. Determine the number of days that have passed without collecting on accounts receivable.
D. Estimate how much time is likely to pass before the current amount of accounts receivable is received in cash.
E. Identify the likelihood of collecting sales on account.
Answer: D
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