Ex. 246
The following information is available for Sumner Company.
Beginning accounts receivable$ 80,000
Ending accounts receivable120,000
Net sales1,100,000
Instructions
Compute the receivables turnover ratio and the average collection period.
Ex. 247
Scully Company had accounts receivable of €115,000 on January 1, 2014. The only transactions that affected accounts receivable during 2014 were net credit sales of €1,200,000, cash collections of €1,000,000, and accounts written off of €30,000.
Instructions
(a)Compute the ending balance of accounts receivable.
(b)Compute the accounts receivable turnover ratio for 2014.
(c)Compute the average collection period in days.