Question
A company's accounts receivable is audited and the following information is obtained: Beginning balance of accounts receivable: $500,000 Ending balance of accounts receivable: $400,000 Sales
A company's accounts receivable is audited and the following information is obtained:
- Beginning balance of accounts receivable: $500,000
- Ending balance of accounts receivable: $400,000
- Sales made during the year: $2,000,000
- Cash received from customers during the year: $1,800,000
Calculate the following:
a) Total amount of bad debt expense for the year
b) Net sales for the year
c) Accounts receivable turnover ratio
Show all calculations and express the answer to the nearest dollar or ratio as applicable.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
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