Medwig Corporation has a DSO of 34 days. The company averages $7,250 in sales each day...

Medwig Corporation has a DSO of 34 days. The company averages $7,250 in sales each day (all customers take credit). What is the company's average accounts receivable? Round your answer to the nearest dollar.

Expert Solution

Information provided:

Days of sales outstanding= 34 days

Credit sales= $7,250

Days of sales outstanding= Average accounts receivable/ Credit sales

Average accounts receivable= Days of sales outstanding* Credit sales

= 34*$7,250

= $246,500.

Therefore, the company’s average accounts receivable is $246,500.

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jeff jeffy answered 10 months ago

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