Trend Industries Company reported the following amounts on its 2012 and 2013 financial statements: ....................................................................................2013.......... 2012 Accounts

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Trend Industries Company reported the following amounts on its 2012 and 2013 financial statements:

....................................................................................2013.......... 2012

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . $ 235,000.... $ 210,000

Allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000......... 8,000

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,145,000... 1,890,000

Cost of sales . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 1,067,000..... 856,000

1. Compute the accounts receivable turnover for 2013.

2. What is the average collection period during 2013? (Use 365 days.)

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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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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