The carrying value of its account receivable is $700,000 and the average collection period is 45 days. The firm's credit sales per day are:

Name: The carrying value of its account receivable is $700,000 and the average collection period is 45 days. The firm's credit sales per day are:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average collection period is calculated as the carrying value of accounts receivable divided by the credit sales per day. Therefore, credit sales per day = $700,000 / 45 days = $15,555.56.

The Carrying Value of Its Account Receivable Is $700,000 and the Average