Presented below is information for Jones Company. 1. Beginning-of-the-year Accounts Receivable balance was $15,000. 2. Net sales

Question:

Presented below is information for Jones Company.

1. Beginning-of-the-year Accounts Receivable balance was $15,000.

2. Net sales (all on account) for the year were $100,000. Jones does not offer cash discounts.

3. Collections on accounts receivable during the year were $70,000.

Instructions

(a) Prepare summary journal entries to record the items noted above.

(b) Compute Jones’s accounts receivable turnover ratio and its days to collect accounts receivable for the year. The company does not believe it will have any bad debts.

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...