The following information is available for Market, Inc. and Supply, Inc. at December 31: Required a. What
Question:
The following information is available for Market, Inc. and Supply, Inc. at December 31:
Required
a. What is the accounts receivable turnover for each of the companies?
b. What is the average days to collect the receivables?
c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?
Accounts Market, Inc. Supply, Inc. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 75,400 2,256 $ 56,200 2,248 606,960 867,100
Step by Step Answer:
a Accounts Receivable Turnover Calculate net accounts receivables Market 56200 2248 53952 Supply ...View the full answer
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Related Video
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis. To compute DSO, divide the average accounts receivable during a given period by the total value of credit sales during the same period and multiply the result by the number of days in the period being measured.
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