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30 June, 07:20

Mr. Husker's Tuxedos Corp. ended the year 2018 with an average collection period of 37 days. The firm's credit sales for 2018 were $56.6 million. What is the year-end 2018 balance in accounts receivable for Mr. Husker's Tuxedos?

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  1. 30 June, 10:47
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    Answer: Accounts receivables = 5737534.25

    Explanation:

    Average collection period measures the average number of days between the day inventory is sold on credit and the day customer settles the credit account.

    average collection period = 37 days

    credit sales = 56600000

    Average collection period = (Accounts receivable/credit sales) x 365

    37 = (Accounts receivables/56600000) x 365

    365Accounts receivables = 56600000 x 37

    Accounts receivables = 2094200000/365

    Accounts receivables = 5737534.2466

    Accounts receivables = 5737534.25
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Home » Business » Mr. Husker's Tuxedos Corp. ended the year 2018 with an average collection period of 37 days. The firm's credit sales for 2018 were $56.6 million. What is the year-end 2018 balance in accounts receivable for Mr. Husker's Tuxedos?
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