Hollander Company reported Net Sales of $1,375,000, beginning Accounts Receivable of $67,200 and ending Accounts Receivable of $72,300. Average Accounts Receivable is:
A)$69,750.
B)$10,200.
C)$33,600.
D)$36,150.
E)$139,500.

Question

Quizplus · Accepted Answer

Average Accounts Receivable can be calculated using the formula:
(Average Accounts Receivable) = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Substituting the given values, we get:
(Average Accounts Receivable) = ($67,200 + $72,300) / 2 = $69,750
Therefore, the correct answer is choice A.

Hollander Company Reported Net Sales of $1,375,000, Beginning Accounts Receivable