A retailer has a collection period of 30 days.Its net sales equals $1,000,000.Its accounts receivable _____.
A)equals $30,000
B)equals $60,000
C)equals $82,192
D)cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

To find the accounts receivable, we need to first calculate the average daily credit sales. We can do this by dividing the net sales by 365 (days in a year):

$1,000,000 / 365 = $2,739.73 (rounded)

This means that the retailer has an average of $2,739.73 in credit sales per day. With a collection period of 30 days, we can multiply this amount by 30 to find the accounts receivable:

$2,739.73 x 30 = $82,192.

Therefore, the answer is C: accounts receivable equals $82,192.

A Retailer Has a Collection Period of 30 Days