Skye Flyer Inc has weekly credit sales of 18100 and the aver

Skye Flyer, Inc., has weekly credit sales of $18,100, and the average collection period is 33 days. What is the average accounts receivable figure?

Solution

Solution:

weekly credit sales=$18,100,

Daily credit sales=$18,100/7=$2585.71

average collection period=33 days

average accounts receivable figure=$2585.71(33)=$85328.57