Answer:
$90,000
Explanation:
Given that:
The cost of a product is 30% of the selling price
The carrying cost is 12% of the selling price
Payment Period = 90 days after sales date
Sale average per month = $30,000
we are to calculate the account receivable for this product.
Since the Sale average per month = $30,000
The cost of the product will be = 30% × $30,000
The cost of the product = 0.3 × $30,000
The cost of the product = $9000
The carrying cost will be = 12% of $30,000
The carrying cost will be = 0.12 × $30,000
The carrying cost will be = $3.600
The account receivable is the money owned to a particular company by its debtors. The account receivable can be calculated as follows:
Since it tooks the accounts 90 days to be paid after sales date which is exactly 3 months and the average sale is $30,000 per month.
The account receivable = 3 × $30,000
The account receivable = $90,000
