The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company’s balance sheet amount in accounts receivable?
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4/360 * 9.75Million= ...
Annual credit sales of 7.75 million - divide this by 365 and that gives you the daily credit sales = 26,712 multiplied by the 34 collection period and your total is $908,219.18
1 answer