1. Ybanez Bikes Shop is a retail store that sells biking equipment and bikes. Due to declining cash sales, Robert, the CEO, decides to extend credit sales to all his customers. In the first year ended December 31, 2020 there were P 500,000 gross credit sales and returns of P 100,000. Starting and ending accounts receivable for the year were P 100,000 and P 200,000 respectively. Robert wants to know how many times his company collects it average accounts receivable over this year. Required: Compute the Accounts Receivable Turnover Ratio

2. Inventory P 100,000 Cost of goods sold P 500,000 Accounts receivable P 80,000 Credit Sales for the year P 500,000 Accounts Payable P 110,000 Allowance for doubtful Accounts P 150,000 Required: Calculate the Days Sales Outstanding

3. Beginning receivable P 50,000 Allowance for doubtful accounts P 20,000 Monthly Credit Sales P 70,000 Bad debts Expense P 15,000 Ending Total Receivable P 40,000 Ending Current Receivable P 35,000 Net sales P 65,000 Required: Calculate the Collection Effectiveness Index