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KCo had accounts receivable of $100,000 on Jan01, 2017. The only transactions that affected accounts receivable during the year were: net credit sales of
KCo had accounts receivable of $100,000 on Jan01, 2017. The only transactions that affected accounts receivable during the year were: net credit sales of $1,000,000, cash collections of $920,000 and accounts written off of $30,000. (a) Compute the ending balance of accounts receivable, (b) Compute the accounts receivable turnover for 2017. (c) Compute the average collection period in days. (a) Beginning accounts receivable Net credit sales (+ or -)? Cash collections (+ or -)? Accounts written off (+ or -)? Ending accounts receivable 100,000 (b) show your calculation and answer below
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