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The correct formula for projecting overdue receivables involves total credit sales multiplied by the collection period or days late divided by 360. This method provides an estimation of the amount of receivables that are overdue by considering both the sales made on credit and the time frame over which these receivables are expected to be collected.

When calculating overdue receivables, understanding the collection period is crucial; it reflects the average number of days that it takes to collect payment after a sale has been made. By including the 'days late' in the calculation, the formula also accounts for the specific overdue nature of those receivables. Dividing by 360 standardizes the calculation into annual terms, making it easier to interpret within the context of typical credit terms and business cycles.

Other formulas provided do not accurately reflect the projection of overdue receivables. Total credit sales multiplied by collection period simply estimates sales and does not differentiate between current and overdue accounts. Similarly, total credit sales multiplied by the percentage after due date lacks the specificity of incorporating the actual time overdue, while dividing credit sales by the average account balance does not branch into overdue amounts, focusing instead on the overall efficiency of credit usage.