A company has accounts receivable of $100,000 at the beginning of the year and $80,000 at the end of the year. During the year, the
A company has accounts receivable of $100,000 at the beginning of the year and $80,000 at the end of the year. During the year, the company had credit sales of $500,000 and cash collections from customers of $450,000.
a) Calculate the company's accounts receivable turnover ratio for the year.
b) Calculate the company's average collection period for the year.
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Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
