Answer:
The firm's accounts receivable balance is $274,444.39
Step-by-step explanation:
In this question, we have to apply the daily sales outstanding ratio which is shown below:
Days sales outstanding = (Accounts receivable ÷ Total credit sales) × total number of days in a year
36 days = ($380,000 ÷ total credit sales) × 365 days
So, the total credit sales = ($380,000) × (365 days ÷ 36 days)
= $3,852,777
Now apply the same formula, So the account receivable equal to
= $3,852,777 × (26 days ÷ 365 days)
= $274,444.39