Answer:
The receivable balance is $ 442,000
Explanation:
The DSO is the abbreviation for Days Sales Outstanding and is referred to in no of days.
Based on the data in the question, the average daily sales is $ 6,205,000/ 365 days.
$ 6,205,000 / 365 days = $ 17,000 per day
If the DSO is 26 days, we need to multiply the average daily sales by the number of days to get the receivable balance
$ 17,000 *DSO of 26 = $ 442,000
