Calculate "Days Sales in Accounts Receivable" for 2020 Required Compute the 'days sales in receivables' for 2020, using the formula below. Compare the results for 2020 and 2021 - which is better? The computation for "Days Sales in AR" for 2021 is "part 1" tab at bottom. The following data is taken from the records of Mom \& Pop Inc. Formula Days Sales in Receivables = Average Accounts Receivable Average Daily Sales Step 1 Calculate "average Accts Receivable" for 2020 add the ending AR for 2020 plus the ending AR of 2019 , then divide by 2 \begin{tabular}{|l|l|l|} \hline & Acct Rec 2020 & \multicolumn{2}{c|}{ Acct Rec 2019} \\ \hline & & \\ \hline & \\ Average AR = \\ \hline \end{tabular} Step 2 Calculate "average Daily Sales" for 2020 take the total sales for 2020 , divide by 365 days to get a "daily average" \begin{tabular}{|l|l|} \hline Net Sales 2020 & Avg Dly Sales \\ \hline & divide by 365 \\ \hline \end{tabular} Step 3 Divide Average AR (from step 1) by Avg Daily Sales (from step 2) to get "Days Sales in AR" Step 4 What was Average Daily Sales in Accts Receivable for 2021? What was Average Daily Sales in Accts Receivable for 2021? Which year was the company doing a better job of collecting AR