Kerwick Company had accounts receivable of $100,000 on January 1, 2022. The only transactions that affected accounts receivable during 2022 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 2022.

c. Compute the average collection period in days.