Answer:
the level of accounts receivable is $112,000
Explanation:
The computation of the level of sales is shown below:
Days Sales Outstanding (DSO) = Accounts Receivable (A/R) ÷ Average Daily Sales
28 days = Account receivable ÷ $4,000
So, the account receivable is
= $4,000 × 28 days
= $112,000
Hence, the level of accounts receivable is $112,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
