1)Which of the following statements is true?

Select one:

The percentage of net sales method estimates the bad debts expense

indirectly.

The accounts receivable aging method estimates the bad debts expense

indirectly.

None of the above is true.

The direct write-off method is generally accepted.

2) Smith & Sons has net sales of $50,000, a beginning balance in accounts

receivable of $5,000, and an ending balance in accounts receivable of $7,000.

What is the company's accounts receivable turnover?

Select one:

6.0

10.0

7.1

8.3

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3) Smith & Sons has an accounts receivable turnover of nine. What is the

company's average collection period?

Select one:

40.6 days

41.6 days

43.1 days

45.1 days