A Company Has Net Credit Sales of $95,000, Beginning Net

question 137

Multiple Choice

A company has net credit sales of $95,000, beginning net accounts receivable of $20,000 and ending net accounts receivable of $18,000. Calculate the days' sales in receivables.

• A)60 days
• B)48 days
• C)58 days
• D)73 days

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Definitions:

Finished Goods Inventory

The value of products that have completed the manufacturing process but have not yet been sold to customers.

Raw Materials Inventory

An account on the balance sheet that represents the cost of materials that have not yet been converted into finished products by a manufacturing company.

Finished Goods Inventory

The stock of final products that are ready to be sold but have not yet been sold to customers.

Cost Of Goods Manufactured

The total production cost of goods completed during a specific period, whether they are sold or not.