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Greene Sisters has a DSO of 20 days. The companys average daily sales are $30,000. What is the level of its accounts receiva
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Answer #1

Accounts receivables refers to the amount that a company has not yet received from its clients.
Level of account receivable is calculated using the formula:
=(Average daily sales)*(Daily sales outstanding period)
Given that;
Daily sales outstanding (DSO) period is 20 days
Average daily sales is $30,000
Substituting the values in the equation we get;
=30000*20
=600000
Answer: Hence, the level of account receivable is $600000

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