On average, your firm sells $33,100 of items on credit each day. The average inventory period is 35 days and your operating cycle is 55 days. What is the average accounts receivable balance

The average account receivable balance is $662,000

Explanation:

The computation of the average account receivable balance is shown below:

= Sells items on credit each day × (operating cycle - average inventory period)

= $33,100 × (55 days - 35 days )

= $33,100 × 20 days

= $662,000

hence, the average account receivable balance is $662,000. The same is to be considered