PWX Inc. has the following information for its years ended June 30: Required: Calculate the accounts receivable
Question:
PWX Inc. has the following information for its years ended June 30:
Required:Calculate the accounts receivable turnover and average collection period for 20X3 and 20X2. Comment on the trend. What additional information would an analyst require to properly understand this trend?
Transcribed Image Text:
Gross sales Accounts receivable 20X3 $567,800 $ 62,500 20X2 $650,700 $ 67,500 20X1 $589,200 $ 53,200
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The collection period has increased from 339 days to 418 day...View the full answer
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
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