Trend Industries Company reported the following amounts on its 2012 and 2013 financial statements: ....................................................................................2013.......... 2012 Accounts
Question:
Trend Industries Company reported the following amounts on its 2012 and 2013 financial statements:
....................................................................................2013.......... 2012
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . $ 235,000.... $ 210,000
Allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000......... 8,000
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,145,000... 1,890,000
Cost of sales . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 1,067,000..... 856,000
1. Compute the accounts receivable turnover for 2013.
2. What is the average collection period during 2013? (Use 365 days.)
Accounts ReceivableAccounts 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...
Step by Step Answer:
1 Net sales 2145000 2013 net receivables 223000 ...View the full answer
