Respuesta :
The accounts receivable turnover, in this case, is 8 times and the number of days' sales in receivables days is equal to 45.6 days.
What is accounts receivable turnover ratio?
The accounts receivable turnover ratio is utilized in commercial enterprise accounting to quantify how well businesses are coping with the credit that they extend to their clients via way of means of comparing how long it takes to receive the great debt at some stage in the accounting period.
a) Accounts receivable turnover:
[tex]\rm\,Accounts \,Receivable\, Turnover = \dfrac{Net\, Sales}{Average Account Receivables}\\\\Accounts \,Receivable\, Turnover = \dfrac{\$315,360}{\$39,420}\\\Accounts \,Receivable\, Turnover = 8 times[/tex]
b)Number of days' sales in receivables days:
[tex]\rm\,Number \,of \,days' Sales \,in \,Receivables\, Days = \dfrac{ Average \,Accounts \,Receivable}{Annual\, Net\, Sales} \times 365\\\\\\Number \,of \,days' Sales \,in \,Receivables\, Days = \dfrac{ \$39,420}{ \$315,360} \times 365\\\\\\Number \,of \,days' Sales \,in \,Receivables\, Days = 45.6\, days[/tex]
Hence, the accounts receivable turnover, in this case, is 8 times and the number of days' sales in receivables days is equal to 45.6 days.
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