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    Days in Accounts Receivable

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    I would like assistance with answering the following question thank you.

    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 Preview

    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 ...

    Solution Summary

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