Laskova A/S had accounts receivable of 100,000 on January 1, 2025. The only transactions that affected accounts

Question:

Laskova A/S had accounts receivable of €100,000 on January 1, 2025. The only transactions that affected accounts receivable during 2025 were net credit sales of €1,000,000, cash collections of €920,000, and accounts written off of €30,000.

Instructions

a. Compute the ending balance of accounts receivable.

b. Compute the accounts receivable turnover for 2025.

c. Compute the average collection period in days.

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