Pickle Inc.had credit sales of $3,500,000 last year and its days sales outstanding was DSO = 35 days.What was its average receivables balance, based on a 365-day year?

Name: Pickle Inc.had credit sales of $3,500,000 last year and its days sales outstanding was DSO = 35 days.What was its average receivables balance, based on a 365-day year?
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Quizplus · Accepted Answer

Average receivables balance = (Credit sales * DSO) / 365 days= (3,500,000 * 35) / 365= $335,616