Question
Dorchester Company had the following balances at the end of 2018 and 2019 respectively: Net Credit Sales - $935,000 for 2018 and $1,032,000 for 2019.
Dorchester Company had the following balances at the end of 2018 and 2019 respectively:
Net Credit Sales - $935,000 for 2018 and $1,032,000 for 2019.
Accounts Receivable - $100,000 for 2018 and $95,000 for 2019.
Allowance for Doubtful Accounts - $6,000 for 2018 and 5,500 for 2019
Calculate the accounts receivable turnover ratio to one decimal place.
HINT: To calculate Average A/R, you need to subtract the balances in the Allowance for Uncollectible accounts from the A/R balances, to get averageNet A/R. Then, calculate A/R turnover as you have learned.
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Principles Of Financial Accounting
Authors: Jerry J. Weygandt, Michael J. Atkins, Donald E. Kieso, Paul D. Kimmel, Valerie Ann Kinnear, Barbara Trenholm, Joan E. Barlow
1st Canadian Edition
1118757149, 978-1118757147
