Suppose the amounts presented here are basic financial information (in millions) from the 2019 annual reports of

Question:

Suppose the amounts presented here are basic financial information (in millions) from the 2019 annual reports of Nike and Adidas.

_________________________________________Nikeadidas

Sales revenue...........................................$19,176.1..........$10,381

Allowance for doubtful accounts, beginning.............78.4...............119

Allowance for doubtful accounts, ending...............110.8...............124

Accounts receivable balance (gross), beginning......2,873.7.............1,743

Accounts receivable balance (gross), ending..........2,994.7.............1,553

Instructions

Calculate the accounts receivable turnover and average collection period for both companies.

Comment on the difference in their collection experiences.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...