Dome Metals has credit sales of $396,000 yearly with credit terms of net 45 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take the full 45 days to pay.
a. What is the average receivables balance? (Use a 360-day year.)
Average receivables balance = ___________________
b. What is the receivables turnover? (Use a 360-day year.)
Receivables turnover = ______________times