the schedule of accounts receivable shows

the schedule of accounts receivable shows

the formula of calculating

account receivable turnover = Net Sales/ average gross receivable

It is basically deducting the allowance for doubtful accounts from the total accounts receivable.

For calculating accounts receivable balance we need accounts receivable turnover rate

So Accounts receivable turnover rate = number of days in year/annual sales outstanding

accounts receivable turnover rate = 360/40 = 9

Accounts receivable balance = 7300000/9

Accounts receivable balance = 811111