Lashkova A/S had accounts receivable of €100,000 on January 1, 2017. The only transactions that affected accounts receivable during 2017 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 2017.
(c) Compute the average collection period in days.