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.)
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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from Accounting 101: Financial AccountingChapter 7 / Lesson 1