Revenue Accounts Receivable Formula

Learn about being an accounts receivable specialist.

Revenue accounts receivable formula. Accounts receivable turnover credit sales average accounts receivables 365 days. For example if a company has an average accounts receivable balance of 200 000 and annual sales of 1 200 000 then its accounts receivable days figure is. The answer derived in the above formula helps to identify the exact time period the cash is received for the credit sales. Accounts receivable annual revenue x number of days in the year accounts receivable days.

Accounts receivable turnover ratio formula. The formula for accounts receivable days is. The accounts receivable turnover ratio formula is as follows. In this article we share what accounts receivable is the formula for calculating the average and turnover ratio examples of calculations how to record accounts receivable on a balance sheet and the difference between accounts receivable and accounts payable.