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1.Assume net A/R at 12/31/19 = $280,000.Compute the days' sales in receivables (average collection period) for 2020 assuming your amounts in #2.Comment on this ratio
1.AssumenetA/R at 12/31/19 = $280,000.Compute the days' sales in receivables (average collection period) for 2020 assuming your amounts in #2.Comment on this ratio assuming credit terms offered to customers are 2/10, n/30.--- ( the info from #2.: Assume, instead, 6% of A/R are estimated uncollectible.a.) Record the entry to estimate bad debts.b)What is the net realizable value of A/R?
BDE21,300
AFDA21,300
Net realizable value= 320,000-19,200- 300,800)
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