Martin Electronics has an accounts receivable turnover equal to 13 times. If accounts receivable are equal...

Martin Electronics has an accounts receivable turnover equal to 13 times. If accounts receivable are equal to $65,000, what is the value for average daily credit sales? (Use a 360-day year. Round your answer to 2 decimal places.)

Expert Solution

Account receivable turnover = 13 times

Net credit sales / Account receivable = 13 times

Net credit sales = 13 * 65000

Net credit sales =$ 845,000

Average daily credit sales = Net credit sales / 360

= 845,000 / 360

Average daily credit sales = $ 2,347.22

jeff jeffy answered 2 years ago

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