The receivable days estimated from the data above is 27 days
What is receivables days?
Receivables days mean the number of days it takes the company to receive cash payments from its customers it has sold to on credit.
It can be determined as the accounts receivable divided by the annual sales revenue(on the premise that all sales on credit),multiplied by the number of days in a year
receivable days=accounts receivable/annual sales*365 days
accounts receivable=3,000
annual sales=40,000
receivable days=3,000/40000*365
receivable days=27 days
An accounting receivable days of 27 days means that it takes the company 27 days after goods are sold to customers on credit to receive cash from customers. This indicates high liquidity since accounts receivable days are less than a month.
Find out out more about receivable days on:https://brainly.com/question/25179871
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