How To Calculate Average Accounts Receivable
Here, we will study about, “How To Calculate Average Accounts Receivable / Average Debtor in Accounting”? You may also be interested in “ How To Calculate Accounts Receivable On Balance Sheet ” Average Accounts Receivable or Average Debtor is the sum of Opening Accounts Receivable and Closing Accounts Receivable divided by 2. Mathematically, we can use the following formula: Average Accounts Receivable Debtor Formula: Opening Accounts Receivable + Closing Accounts Receivable / 2 Here Beginning Accounts Receivable / Debtor is the Closing Balance during the Last Account Period and Closing Balance of Accounts Receivable is calculated during Current Accounting Period. Example: If the Accounts Receivable For The Previous Accounting Period is Rs. 600000 and during the Current Accounting Period is Rs. 8000000, then Average can be found as shown below: Average Accounts Receivable = 600000 + 800000 / 2 = 700000 If the Average of...