Whalen Company had net sales of $125,500,250,000. Whalen had the following balances: January 1 December 31 Accounts

Question:

Whalen Company had net sales of $125,500,250,000. Whalen had the following balances:

January 1 December 31

Accounts receivable........$2,500,500,000.....................$2,750,000,000

Inventories.....................1,500,000,000......................1,600,000,000

Required:

1. Calculate the average accounts receivable.

2. Calculate the accounts receivable turnover ratio.

3. Calculate the accounts receivable turnover in days.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...