Days' sales in receivables

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Days' sales in receivables is ratio of average net accounts receivable to one day's sale. It indicates how many days' sales remain in Accounts Receivable awaiting collection.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Days' sales in receivables. Ratio of average net accounts receivable to one day's sale. It indicates how many days' sales remain in Accounts Receivable awaiting collection.
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