In a group of two or three students, visit a fairly large company in your community to
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In a group of two or three students, visit a fairly large company in your community to investigate the effectiveness of its management of accounts receivable. Inquire about its credit and sales discount policies, collection policies, and how it establishes the amount for the adjusting entry for uncollectible accounts at year-end. Also ask about how it decides to write off accounts as uncollectible. Calculate its accounts receivable turnover and average collection period for each of the last two years. In view of its credit policies, does its collection period seem reasonable?
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Related Book For
Financial Accounting A Business Perspective
ISBN: 9780072289985
7th Edition
Authors: Roger H. Hermanson, James Don Edwards
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