Asked by giggly puffs on Apr 29, 2024
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An account receivable is an outstanding debt owed to a business by a customer. The "age" of an account receivable is the length of time that it has been outstanding. At the end of October, a firm has $12,570 in receivables that are 30 days "old," $6,850 that are 60 days "old," and $1,325 that are 90 days "old." What is the average "age" of its accounts receivable at the end of October?
Account Receivable
Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.
Outstanding Debt
The total amount of borrowed money that has not yet been repaid by the borrower.
Average Age
The mean age of a group of individuals or items, calculated by summing their ages and dividing by the number of individuals or items.
- Calculate and scrutinize average metrics within personal and commercial financial scenarios.
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Learning Objectives
- Calculate and scrutinize average metrics within personal and commercial financial scenarios.
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