On average,your firm sells $38,700 of items on credit each day.The firm's average operating cycle is 49 days and it acquires and sells inventory,on average,every 17 days.What is the average accounts receivable balance?
A)$657,900
B)$848,000
C)$1,238,400
D)$1,315,500
E)$1,896,300

Question

Quizplus · Accepted Answer

Accounts receivable balance = $38,700 × (49 - 17) = $1,238,400

On Average,your Firm Sells $38,700 of Items on Credit Each