A company has the following data for the current year: Beginning accounts receivable: $20,000 Ending accounts receivable:
Fantastic news! We've Found the answer you've been seeking!
Question:
A company has the following data for the current year:
- Beginning accounts receivable: $20,000
- Ending accounts receivable: $25,000
- Credit sales: $150,000
- Cash collections: $125,000
- Allowance for doubtful accounts: $2,500
Calculate the company's accounts receivable turnover ratio, average collection period, and bad debt expense for the year assuming an estimated uncollectible percentage of 2%.
Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
Posted Date: