Answer:
36.50 days
Explanation:
The computation of the number of days to collect is shown below:
As we know that
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
where,
Net credit sales is $400,000
And, the Average accounts receivable is $40,000
So, the accounts receivable turnover ratio would be
= $400,000 ÷ $40,000
= 10 times
Now the number of days collected is
= Total number of days in a year ÷ Accounts receivable turnover ratio
= 365 days ÷ 10
= 36.50 days
