Compute the number of days sales in receivables

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Reference no: EM132662715

The following account balances are taken from the records of the Odessa Industries December 31 2018 2017 2016 Accounts receivable R180,000 R120,000 R90,000 Net credit sales R900,000 R840,000 Odessa extends credit terms requiring full payment in 45 days, with no discount for early payment Netcredit sales

Required:

Problem 1 Compute Odessa's accounts receivable turnover ratio for 2018 and 2017

Problem 2 Compute the number of days' sales in receivables for 2018 and 2017 Assume 360 days in a year

Problem 3 Comment on the efficiency of Odessa's collection efforts over the two-year period

Reference no: EM132662715

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