Respuesta :
Answer:
The approximate year-end 2018 balance in accounts receivable for Corn Products is $1506849.31
Explanation:
For computing the year-end balance of accounts receivable, we have to use the formula of the average collection period which is shown below:
Average collection period = 365 ÷ average accounts receivable
50 = 365 ÷ average accounts receivable ratio
So, average accounts receivable ratio = 365 ÷ 50 = 7.3
Now, average accounts receivable ratio = Net credit sales ÷ average accounts receivable
7.3 = $11,000,000 ÷ average accounts receivable
So, Average accounts receivable = $11,000,000 ÷ 7.3 = $1506849.31
We assume 365 days in a year
Hence, the approximate year-end 2018 balance in accounts receivable for Corn Products is $1506849.31
