Knight Roundtable Co has annual credit sales of $1,080,000 and an average collection period of 32 days in 2008 Assume a 360 day year What is the companys average accounts receivable balance Accounts receivable are equal to the average daily credit sales times the average collection period ...

Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collection period of 32 days

Question:

Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2008. Assume a 360-day year. What is the company’s average balance? are equal to the average daily credit sales times the average collection period.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...