---
title: Accounts receivable balance (LO4) Knight Roundtable Co. has annual credit sales of $1,080,000
description: "Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2008. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit…"
url: "https://www.coursequizpro.com/docs/accounts-receivable-balance-lo4-knight-roundtable-co-has-annual-credit-sales-of-1080000/"
updated: "2024-03-06"
---

# Accounts receivable balance (LO4) Knight Roundtable Co. has annual credit sales of $1,080,000

Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2008. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period.

Solution:
Knight Roundtable Co.

Credit sales per day= (Annual credit sales)/360

=$x, xxx, xxx/xxx

=$x,xxx

Average accounts receivable balance= credit sales ×avrage collection period

=$x,xxx × xx

=$xx, xxx

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