At December 31, 2017, Pembina Imports Inc. reported this information on its balance sheet.

Accounts receivable		$645,000
Less: Allowance for doubtful accounts		42,000

During 2018, the company had the following summary transactions related to receivables and sales. Pembina uses the perpetual inventory system.

1.		Sales on account amounted to $2,463,000. The cost of the inventory sold was $1,921,140.
2.		Sales returns and allowances with a total sales price of $39,000 and a cost of $30,420 were restored to inventory.
3.		Collections of accounts receivable were $2,174,000.
4.		Write-offs of accounts receivable deemed uncollectible, $47,200.
5.		Recovery of bad debts previously written off as uncollectible, $14,500.

d) Calculate the rceivables turnover ratio and average collection period. (Round receivables turnover to 1 decimal place, e.g. 5.2. Round average collection period to nearest whole day, e.g. 15.))

5. Accounts Receivable 14500 Allowance for Doubtful Accounts 14500 (To reverse write-off of account receivable) Cash 14500 Accounts Receivable 14500 (To record recovery of uncollectible amount) eTextbook and Media List of Accounts Atte (b) Your answer is correct. Enter the January 1, 2018, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T accounts), and determine the balances before any year-end adjustments. (Post entries in the order of journal entries presented in the previous question.) Accounts Receivable Beg. Bal. 645000 (2) 39000 (1) 2463000 (3) 2174000 (5) (4) 14500 47200 (5) 14500 End, Bal, 847800 Allowand Doubtful Accounts Beg. Bal. (4) 47200 42000 (5) 14500 End. Bal. 9300 (d) x Your answer is incorrect. Calculate the receivables turnover ratio and average collection period. (Round receivables turnover to 1 decimal place, e.g. 5.2. Round average collection period to nearest whole day, e.g. 15.) Receivables turnover ratio times 3.5 Average collection period days 104 eTextbook and Media List of Accounts Attempts: 1 of 2 used Check Answer Save for Later