Jensen Company’s general ledger included the following selected accounts (in thousands) at December 31, 2024:

Additional information:
1. On December 31, 2023, Accounts Receivable was $611.1 thousand and the Allowance for Doubtful Accounts was $36.6 thousand.
2. The receivables turnover was 8.3 the previous year.

Instructions
a. Prepare the assets section of the balance sheet.
b. Calculate the receivables turnover and collection period. Compare these results with the previous year’s results and comment on any trends.

Taking It Further

What other information should Jensen consider when analyzing its receivables turnover and collection period?

Transcribed Image Text:

Accounts payable Accounts receivable Accumulated depreciation-equipment Allowance for doubtful accounts Bad debt expense Cash Cost of goods sold Equipment Interest revenue Merchandise inventory Notes receivable-due in 2025 Notes receivable-due in 2028 Prepaid expenses Sales Sales discounts Short-term investments Supplies Unearned revenue $1,077.3 590.4 858.7 35.4 91.3 395.6 660.4 1,732.8 19.7 630.9 96.0 191.1 20.1 4,565.5 31.3 194.9 21.7 56.3