Final answer:
The question asks for the average accounts receivable but cannot be answered with the provided information as there are no figures for accounts receivable. The provided data instead allows calculating the firm's accounting profit, which would be $50,000 if sales revenue was $1 million with $950,000 in total expenses.
Step-by-step explanation:
The question "What is the sum of accounts receivable at January 1 and December 31 divided by 2?" refers to the calculation of the average accounts receivable over a period (in this case, a year). This calculation is not possible with the provided information as there are no specific figures given for accounts receivable on either date. Instead, we have other financial data related to assets, liabilities, and the firm's accounting profit.
For instance, to calculate the firm's accounting profit, we would subtract the total expenses (labor, capital, and materials) from the sales revenue. Using the self-check question provided, if a firm had sales revenue of $1 million and spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, the accounting profit would be
- Sales Revenue: $1,000,000
- Total Expenses: $600,000 (labor) + $150,000 (capital) + $200,000 (materials) = $950,000
- Accounting Profit: $1,000,000 - $950,000 = $50,000
However, since the actual accounts receivable figures are missing, we cannot answer the original question pertaining to the average accounts receivable. In future questions on similar topics, ensure the necessary figures are provided.