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Days in Accounts Receivable

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Using the following information, compute the Days in Accounts Receivable amounts for the end of each quarter:

Accounts Receivable Month Revenues at End of Quarter
January $350,000 $275,000
February 375,000 290,000
March 225,000 200,000
1st Quarter Total $950,000 $765,00

April $300,000 $270,000
May 320,000 310,000
June 400,000 320,000
2nd Quarter Total $1,020,000 $900,000

July $350,000 $335,000
August 275,000 250,000
September 200,000 150,000
3rd Quarter Total $825,000 $735,000

October $310,000 $300,000
November 425,000 285,000
December 290,000 240,000
4th Quarter Total $1,025,000 $825,000

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Solution Summary

The solution explains how to calculate the days in accounts receivable.

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Days in Accounts Receivable means the number of days of sale that is not collected. To get the Accounts Receivable Days, we need the per days sales.Dividing the accounts receivable figure by the per days sales gives us the days in accounts receivable.

For Quarter 1 the Accounts Receivable are 200,000 and the sales in March are 225,000. Since ...

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