Question
The following information is available for Market, Incorporated and Supply, Incorporated at December 31. Accounts Market, Incorporated Supply, Incorporated Accounts receivable $59,200 $76,600 Allowance for
The following information is available for Market, Incorporated and Supply, Incorporated at December 31.
| Accounts | Market, Incorporated | Supply, Incorporated |
|---|---|---|
| Accounts receivable | $59,200 | $76,600 |
| Allowance for doubtful accounts | 2,648 | 3,056 |
| Sales revenue | 616,960 | 887,100 |
Required
What is the accounts receivable turnover for each of the companies?
What is the average days to collect the receivables?
Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?
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Oil And Gas Industry IRS Audit Technique Guide
Authors: Internal Revenue Service
1st Edition
1304113434, 978-1304113436
