During 2017, Jesse Jericho Enterprises Corporation recorded credit sales of $650,000. At the beginning of the year,

Question:

During 2017, Jesse Jericho Enterprises Corporation recorded credit sales of $650,000. At the beginning of the year, Accounts Receivable, Net of Allowance was $50,000. At the end of the year, after the Bad Debt Expense adjustment was recorded but before any bad debts had been written off, Accounts Receivable, Net of Allowance was $49,000.

Required:

1. Assume that on December 31, 2017, accounts receivable totalling $6,000 for the year were determined to be uncollectable and written off. What was the receivables turnover ratio for 2017? Round to one decimal place.

2. Assume instead that on December 31, 2017, $7,000 of accounts receivable was determined to be uncollectable and written off. What was the receivables turnover ratio for 2017? Round to one decimal place.

3. Explain why the answers to requirements 1 and 2 differ or do not differ.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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