How do you calculate accounts receivable days outstanding?

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Answer

1054158

2026-04-05 13:35

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First calculate A/R turnover:

A/R Turnover = Sales/ Average A/R

A/R days outstanding = Amt. of days in a year (could be 360 or 365 depending on problem) divided by A/R turnover

In short, A/R outstanding = 365/accounts receivable turnover.

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