Kerwick Company had accounts receivable of $100,000 on January 1, 2020. The only transactions that affected accounts

Question:

Kerwick Company had accounts receivable of $100,000 on January 1, 2020. The only transactions that affected accounts receivable during 2020 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 2020.
c. Compute the average collection period in days.

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...

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