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James River Enterprises has made an analysis of its sales and accounts receivable for the past five years. Assume that all accounts written off in
James River Enterprises has made an analysis of its sales and accounts receivable for the past five years. Assume that all accounts written off in any year related to sales of the preceding year, and were part of the accounts receivable at the end of that preceding year. No account is written off before the end of the year of the sale, and all accounts remaining unpaid are written off before the end of the year following the sale. EXAMPLE: The $ written off in related to sales, and was included in the ending accounts receivable for
The analysis showed the following:
tableSALES,tableENDING ACCOUNTSRECEIVABLEtableBAD DEBTS WRITTENOFF DURING THE YEAR$$$
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