Average Accounts Receivable

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Average accounts receivable, abbreviated as AAR, is the average amount of receivables during a reported period.

 

average accounts receivable Formula

\(\large{ AAR =  \frac{ OB \;+\; CB }{ 2 }  }\)  

Where:

\(\large{ AAR }\) = average accounts receivable

\(\large{ CB }\) = closing balance

\(\large{ OB }\) = opening balance

 

Tags: Equations for Manufacturing