Evaluating Accounts Receivable Performance Companies offer trade credit to make it easier for customers to do business with them but how can a company check whether receivables are being paid in a timely fashion? Imagine that a company has terms of "Net 30" - we would expect most receivables to be paid close to 30 days. How can we check? And can we tell if it's getting worse? Required Compute the 'days sales in receivables' for 2021 using the formula below, then click on the tab at bottom to go to part 2 of the worksheet and do the same for 2020. The computation for "Days Sales in AR" for 2020 is the "part 2" tab at bottom. The following data is taken from the records of Mom & Pop Inc. Mom & Pop Inc. 2021 Net Sales $ Accounts Receivable $ 2020 7,300 $ 6,205 $ 660 $ 620 $ 2019 5,840 570 Formula Days Sales in Receivables = Average Accounts Receivable Average Daily Sales