The following selected financial information is available for three companies:

Required
a. Divide the class into three sections and divide each section into groups of three to five students. Assign one of the companies to each of the sections.
Group Tasks
(1) Determine the missing amounts for your company.
(2) Determine the percentage of accounts receivable estimated to be uncollectible at the end of 2015 and 2016 for your company.
(3) Determine the percentage of total sales that are sales on account for your company.
(4) Determine the accounts receivable turnover for your company.
Class Discussion
b. Have a representative of each section put the missing information on the board and explain how it was determined.
c. Which company has the highest percentage of sales that are on account?
d. Which company is doing the best job of collecting its accounts receivable? What procedures and policies can a company use to better collect its accounts receivable?

Transcribed Image Text:

Expo White Zina Total sales Cash sales Sales on account Accounts receivable, January 1, 2016 Accounts receivable, December 31, 2016 Allowance for doubtful accounts, January 1, 2016 Allowance for doubtful accounts, December 31, 2016 Uncollectible accounts expense, 2016 Uncollectible accounts written off Collections of accounts receivable, 2016 $125,000 $210,000 26,000 $120,000 75,000 40,000 6,200 5,600 42,000 48,000 7,500 405 224 242 204 1,680 1,200 1,360 395 365 75,235