GoodHealth Hospital has just compiled their year-end results and had 125,000 clinic visits with an average reimbursable rate of $25/visit (net of contractuals & bad debts)
Management also noted that the Accounts Receivable Balance before allowance for bad debts of $500,000. The allowance for bad debts generally runs approximately 15% of the total gross receivables.
A) What is GoodHealth's days in accounts receivable? [Provide supporting calculation]
Note: round dollar values to the nearest penny and for Days in AR to one decimal place.