The following data are taken from the financial statements of Gladow Company. ____________________________________ 2017 __________ 2016 Accounts
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The following data are taken from the financial statements of Gladow Company.
____________________________________ 2017 __________ 2016
Accounts receivable (net), end of year ... € 550,000 ...........€ 520,000
Net sales on account ..........................3,680,000 ..........3,000,000
Terms for all sales are 1/10, n/60.
(a) Compute for each year
(1) The accounts receivable turnover and
(2) The average collection period. At the end of 2015, accounts receivable (net) was €480,000.
(b) What conclusions about the management of accounts receivable can be drawn from these data?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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