Problem 17-10 Size of Accounts Receivable [LO 2] Two Doors Down, Inc., has weekl
ID: 2825838 • Letter: P
Question
Problem 17-10 Size of Accounts Receivable [LO 2]
Two Doors Down, Inc., has weekly credit sales of $34,500, and the average collection period is 37 days. (Enter your answer as directed, but do not round intermediate calculations.)
Required:
What is TDD’s average accounts receivable figure? (Round your answer to 2 decimal places (e.g., 32.16).)
Average accounts receivable
$
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Hint #1
Two Doors Down, Inc., has weekly credit sales of $34,500, and the average collection period is 37 days. (Enter your answer as directed, but do not round intermediate calculations.)
Explanation / Answer
Average collection period: 37 days Credit sales: $34500 Average collection period: Number off days in year / Credit sales * Average Accounts receivable 37 = 365 / 34500 * Average collection period Average Accounts receivable: $ 3497.26