Problem:
Rocket City Space Camp has annual credit sales of $16 million. The average collection period is 35 days.
Required:
Question: What is the average investment in accounts receivable as shown on the balance sheet?
A. $646,000
B. $824,000
C. $1,408,888
D. $1,534,247
E. $1,693,134
Note: Please provide reasons to support your answer.