Problem 1710 Size of Accounts Receivable LO 2 Two Doors Down

Problem 17-10 Size of Accounts Receivable [LO 2]

Two Doors Down, Inc., has weekly credit sales of $34,500, and the average collection period is 37 days. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

What is TDD’s average accounts receivable figure? (Round your answer to 2 decimal places (e.g., 32.16).)

  Average accounts receivable

$

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Hint #1

Two Doors Down, Inc., has weekly credit sales of $34,500, and the average collection period is 37 days. (Enter your answer as directed, but do not round intermediate calculations.)

Solution

Average collection period: 37 days Credit sales: $34500 Average collection period: Number off days in year / Credit sales * Average Accounts receivable 37   = 365 / 34500 * Average collection period Average Accounts receivable: $ 3497.26