If the collection period of a company is 31 days, and the average receivables are $70,060, what is the total amount of the credit sales?

Name: If the collection period of a company is 31 days, and the average receivables are $70,060, what is the total amount of the credit sales?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The formula for calculating credit sales is:

Credit Sales = Average Accounts Receivable x Days in Collection Period

Therefore, Credit Sales = $70,060 x 31 = $2,171,860

The correct answer is (D) $2,171,860.

If the Collection Period of a Company Is 31 Days