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 amount of accounts receivable can be calculated using the formula: (Annual Sales / 365 days) * DSO. So, for Bello Inc., it's ($2,500,000 / 365) * 35 = $239,726.

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