If Khaba Corporation has sales of R2 million per year (all credit) and days sales outstanding of 35 days, what is its average amount of accounts receivable outstanding (assume a 360 day year)?

Name: If Khaba Corporation has sales of R2 million per year (all credit) and days sales outstanding of 35 days, what is its average amount of accounts receivable outstanding (assume a 360 day year)?
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Question

Quizplus · Accepted Answer

Average accounts receivable = (Sales / 360) * Days sales outstanding= (2,000,000 / 360) * 35= R194,444

If Khaba Corporation Has Sales of R2 Million Per Year