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Mr. Husker's Tuxedos Corp. ended the year 2015 with an average collection period of 34 days. The...

Question:

Mr. Husker's Tuxedos Corp. ended the year 2015 with an average collection period of 34 days. The firm's credit sales for 2015 were $55.9 million. What is the year-end 2015 balance in accounts receivable for Mr. Husker's Tuxedos? (Enter your answer in dollars, not millions. Round your answer to the nearest whole dollar. Use 365 days a year.)

Receivable Management:

The average collection period is the average number of days between the date a credit sale is made and the date payment is received from the customer for the credit sale.

Answer and Explanation:

We're given that the average collection period for Mr. Husker's Tuxedos Corp. is 34 days and that the firm's credit sales for 2015 were $55.9...

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Accounts Receivable: Definition, Process & Examples

from Accounting 101: Financial Accounting

Chapter 7 / Lesson 1
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