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what is the average days to collect for year 4 and 5? WorldBiz operates divisions around the world. Its European division-EuroBiz (EB)-has recently reported the
what is the average days to collect for year 4 and 5?
WorldBiz operates divisions around the world. Its European division-EuroBiz (EB)-has recently reported the following information to you at WorldBiz's head office. You are trying to decide whether to direct your internal audit staff to investigate more closely. Required: 1.a. For each of the years, calculate the proportion of gross accounts receivable estimated to be uncollectible as allowed for in the Allowance for Doubtful Accounts. 1-b. Which year does not align with the other two? 2-a. For each of the years, calculate the proportion of Net Sales Revenue that Bad Debt Expense represents. 2-b. Which year does not align with the other two? 3-a. Did customers take greater (or lesser) advantage of sales discounts in Year 5 than in Year 4 and Year 3? 3-b. Does this indicate customers were more (or less) likely to promptly pay their balances in Year 5 as compared to prior years? 4-a. Calculate the average days to collect in Year 5 and Year 4. 4-b. Does this measure indicate customers paid their balances faster (or slower) in Year 5 as compared to Year 4 ? 5. Indicate (yes or no) whether you should direct your internal audit staff to investigate EB's recelvables management practices more closely. Answer is not complete. Complete this question by entering your answers in the tabs below. Calculate the average days to collect in Year 5 and Year 4. (Use 365 days in a year. Round your intermedlate calculations to 1 decimal place.) Step by Step Solution
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