The following information is available for Spring Inc. and Winter Inc. at December 31, 2011: Required a.

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The following information is available for Spring Inc. and Winter Inc. at December 31, 2011:

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a. What is the accounts receivable turnover for each of the companies for 2011?

b. What is the average days to collect the receivables for 2011 ?

c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?

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Fundamental Financial Accounting Concepts

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7th Edition

Authors: Thomas Edmonds

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The following information is available for Spring Inc. and Winter Inc. at December 31, 2011: Required a.

Question:

Accounts Accounts Receivable Allowance for Doubtful Accounts Sales Revenue Spring, Inc. $ 88,200 3,528 977,500 Winter, Inc. $ 103,400 3,102 1,230,500

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a Calculation of accounts receivable turnover ratio for both Spring Inc and Winter Inc Formula Accou...View the full answer

Fundamental Financial Accounting Concepts

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