Question
A company has the following data for the current year: Beginning accounts receivable: $20,000 Ending accounts receivable: $25,000 Credit sales: $150,000 Cash collections: $125,000 Allowance
A company has the following data for the current year:
- Beginning accounts receivable: $20,000
- Ending accounts receivable: $25,000
- Credit sales: $150,000
- Cash collections: $125,000
- Allowance for doubtful accounts: $2,500
Calculate the company's accounts receivable turnover ratio, average collection period, and bad debt expense for the year assuming an estimated uncollectible percentage of 2%.
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Financial Accounting
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
6th Canadian edition
134564146, 978-0134141091, 134141091, 978-0134564142
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