Answered: 2022 2021 Average accounts receivable P…

Business

Accounting

2022 2021 Average accounts receivable P 400,000 P 416,000 Net credit sales P2,600,000 P3,100,00C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Rivers Company reports the following data relative to accounts receivable. The terms of sale are net 30 days.

(check the attached photo)

Requirement:

(A) Compute the accounts receivable turnover and

(B) the collection period.

2022
2021
Average accounts receivable
P 400,000
P 416,000
Net credit sales
P2,600,000
P3,100,000

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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