receivables turnover

average collection period

At December 31, 2021, Pharoah Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations: Account Debit Credit Accounts receivable $756,000 Accounts payable $378,000 Cash. 43,200 Cost of goods sold 1,890,000 Interest receivable 1,225 Interest revenue 2,425 Merchandise inventory 351,000 Notes receivable, due April 10, 2022 48,600 Prepaid insurance 8,640 Refund liability 65,000 Short-term investments 54,000 Sales 3,585,600 Sales returns and allowances 108,000 Sales returns and allowances Unearned revenue 108.000 27,000 Your answer is correct. Prepare the journal entry to record the bad debt expense on December 31, 2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Debit Credit Dec. 31 Bad Debt Expense 30240 Allowance for Doubtful Accounts (To record estimate of uncollectible accounts) 30240 Current Assets Short-Term Investments Accounts Receivable Less Notes Receivable Interest Receivable Merchandise Inventory Prepaid Insurance Allowance for Doubtful Accounts PHAROAH INDUSTRIES Balance Sheet (Partial) Assets December 31, 2021 756000 30240 43200 54000 725760 48600 1225 351000 8640 Total Current Assets 1232425 eTextbook and Media List of Accounts x Your answer is incorrect. Calculate the receivables turnover and collection period. (Remember that this is the end of the first year of business.) (Round answers to 1 decimal place, eg. 52.7. Use 365 days for calculation) Receivables turnover 4.60 times Average collection period 79 days