Final answer:
The net sales for Moorcroft Outboard Motor Company for the year 2021 are calculated using the average accounts receivable and the average collection period, yielding approximately $2,557,077.63.
Step-by-step explanation:
The student is asking how to calculate the net sales for the year 2021, given the average collection period and the net accounts receivable for two consecutive years. To find the net sales, we need to use the average collection period formula, which involves accounts receivable and days in the year. Here is the calculation you would need:
First, calculate the average accounts receivable:
($400,000 on 12/31/2021 + $300,000 on 12/31/2020) / 2 = $350,000
Then apply the average collection period formula:
Net Sales = Average Accounts Receivable / (Average Collection Period / 365)
Net Sales = $350,000 / (50 / 365) = $350,000 / 0.1369863 = $2,557,077.63
Therefore, the net sales for Moorcroft Outboard Motor Company for the year 2021 are approximately $2,557,077.63.