Darlas Cosmetics has annual credit sales of $1,440,000 and an average collection period of 45 days in

Question:

Darla’s Cosmetics has annual credit sales of $1,440,000 and an average collection period of 45 days in 2018. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period.

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