Answer:
. $383,562
Explanation:
Days of sales outstanding (DSO) = Number of days in a period / Receivables turnover
Receivables turnover = Revenue /Average receivables
$4,000,000 /Average receivables = Receivables turnover
35 = 365 / ($4,000,000 /Average receivables)
Average receivables = $383,561.64
Answer:
Option C
Average receivable balance=$383,562
Explanation:
While the the Days sales outstanding (DSO) is the average length if time it takes a business to collect the amount owing from customers in respect of credit sales
Average receivable balance is the amount of credit sales which is left uncollected on the average at the end of accounting period.
The average receivable balance can be calculated as follows:
Average receive balance = DSO/365 × credit sales
Average receivable balance = 35/365 × 4,000,000 = 383,561.64
Average receivable balance=$383,562
