Question

Asked Sep 5, 2019

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Mr. Husker’s Tuxedos Corp. ended the year 2021 with an average collection period of 33 days. The firm’s credit sales for 2021 were $56.2 million.

What is the year-end 2021 balance in accounts receivable for Mr. Husker’s Tuxedos? **(Enter your answer in dollars not in millions.)**

*Accounts Receivable = __________*

Step 1

Average Collection period = Average receivables x 365 / Credit sales

Hence, average receivables = Credit Sales x average collection period / 365

Step 2

Now please note two things:

1. We have made an assumption that there are 365 days in the year. This is a normal and customary assumption.

2. Please note that the term ...

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