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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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