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dlaskey646
04.10.2019 •
Business
Tcbw last year had an average collection period (days sales outstanding) of 36 days based on accounts receivable of $380,000. all of the firm's sales are made on credit. the firm expects sales this year to be the same as lat year. however, the company has begun a new credit policy that should lower the average collection period to 26 days. if the new average collection period is attained, what will the firm's accounts receivable balance equal?
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Ответ:
The firm's accounts receivable balance is $274,444.39
Explanation:
In this question, we have to apply the daily sales outstanding ratio which is shown below:
Days sales outstanding = (Accounts receivable ÷ Total credit sales) × total number of days in a year
36 days = ($380,000 ÷ total credit sales) × 365 days
So, the total credit sales = ($380,000) × (365 days ÷ 36 days)
= $3,852,777
Now apply the same formula, So the account receivable equal to
= $3,852,777 × (26 days ÷ 365 days)
= $274,444.39
Ответ:
hi
Explanation: