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Cash Budgeting

The Webster's Company sells on credit terms of net 45. Its accounts are on average 45 days past due. If annual credit sales are $5 million, what is the company's balance in accounts receivable?

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Since the accounts are on average 45 days past due, the balance in Accounts Receivable will ...

Solution Summary

The solution explains how to calculate the balance in the accounts receivable account.

$2.19