Bargains Co. reported annual net sales for 2012 and 2013 of $ 665,000 and $ 747,000, respectively.

Question:

Bargains Co. reported annual net sales for 2012 and 2013 of $ 665,000 and $ 747,000, respectively. Its year-end balances of accounts receivable follow: December 31, 2012, $ 61,000; and December 31, 2013, $ 93,000.

(a) Calculate its days’ sales uncollected at the end of each year. Round the number of days to one decimal.

(b) Evaluate and comment on any changes in the amount of liquid assets tied up in receivables.

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...