Accounts receivable turnover and days' sales uncollected LOS

Mega Company and Holton Company are similar firms that operate within the same industry. The follow- ing information is available:

a. Which company has the more favourable accounts receivable turnover in 2017?

b. Which company has the greater number of days in uncollected accounts in 2017? Is this generally favourable or unfavourable?

c. Which company is showing an unfavourable trend in terms of managing accounts receivable?

Exercise 8-7 Recelvables, allowance for doubtful accounts, write-off, and subsequent recovery L01,2,3 Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $50,000, the bad debt expense account had a balance of $0, and the allowance for doubtful account had a credit balance of $5,000. Journalize the remaining journal entries for the 2017 year. Dec. 2 Sold tents for $5,000 on account with a cost of $2,500. 20 Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,200 and Grouse Co. with an accounts receivable balance of $2,500 were uncollectible and needed to be written off. 23 Unexpectedly received payment from Grouse Co. for $2,500. 31 Estimated that 10% of accounts receivable recorded to date would be uncollectible