Question 1
 Question 2:

  

IZON Ltd (IZON), a GST registered company, is a multinational corporation which operates a chain of membership-only clubs. Refer to the following information from IZON's accounts receivable disclosure note Receivables, net Receivables consist of the following at the end of the financial years 2017 and 2016 (dollars in thousands): Subscription receivables Food & beverage receivables Other receivables Allowance for doubtful accounts Receivables, net 2017 $429 264 152 $842 2016 $411 269 150 $826 2015 $300 230 145 (5) $670 Required (i) Calculate the average collection period for accounts receivable if the sales revenue in 2017 and 2016 was $5,004,000 and $5,236,000 respectively (4 marks) (ii) Based on the information in the receivables disclosure note and in your answers to (i) above, discuss how IZON is managing its receivables for financial year 2017 relative to financial year 2016 and whether there is any cause for concern. Restrict your reasons to a maximum of three points. (4 marks) (iii) Assume that IZON recorded an impairment loss of accounts receivable of $500,000 for the financial year 2017. What is the amount that IZON wrote off as uncollectible during the financial year 2017? (2 marks)