Barga Co. reported net sales for 2016 and 2017 of $664,000 and $744,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2016, $61,000; and December 31, 2017, $90,000.
a. Complete the below table to calculate the days' sales uncollected at the end of each year.
Explanation
a. Days' sales uncollected on December 31, 2016:
Days' sales uncollected on December 31, 2017:
a. Complete the below table to calculate the days' sales uncollected at the end of each year.
Explanation
a. Days' sales uncollected on December 31, 2016:
| $61,000 | × 365 = 33.5 days |
| $664,000 |
Days' sales uncollected on December 31, 2017:
| $90,000 | × 365 = 44.2 days |
| $744,000 |
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