Question 3 - XYZ Pty Ltd

XYZ Pty Ltd reports the following results in its financial statements:

Year 3 Year 2 Year 1

Net Sales $2,500,000 $2,050,000 $1,900,000

Accounts Receivable,

Ending Balance $175,000 $167,000 $165,000

Calculate the XYZ Pty Ltd accounts receivable turnover for Year 2 and Year 3.

Question 4 - Doubtful Debts

As the bookkeeper, you are required complete the doubtful debts exercise. Complete all components of the doubtful debts exercise after reading the scenario information provided in appendix 'Case Study - Corimal Health Foods Shop'.

1. For each of the 3 years, work out the amount that should be written off as bad debt expenses in the accounts. Show your workings.
2. Make recommendations about how debts owed by customers can be recovered more effectively.