The graph below shows the trend in percentage of uncollectible accounts receivables over a five-year period at

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The graph below shows the trend in percentage of uncollectible accounts receivables over a five-year period at Luna Incorporated.

Luna Incorporated Percentage of Uncollectible Receivable, Five-Year Period


Required:

1. Interpret the graph and determine, with an explanation, whether the trend is desirable or undesirable.

2. What are some possible causes of the change in percentage of uncollectible accounts receivables over the five-year period?

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Related Book For  book-img-for-question

Intermediate Accounting Volume 1

ISBN: 9781260881233

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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