Bello Inc. had sales of $2,500,000 per year (all credit,) and its DSO was 35 days. What was its average amount of accounts receivable outstanding, based on a 365-day year?

Name: Bello Inc. had sales of $2,500,000 per year (all credit,) and its DSO was 35 days. What was its average amount of accounts receivable outstanding, based on a 365-day year?
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Quizplus · Accepted Answer

The average accounts receivable can be calculated using the formula: (DSO/365) * Total Sales. Here, (35/365) * $2,500,000 = $239,726.

Bello Inc Had Sales of $2,500,000 Per Year (All Credit,) and and Its