At January 1, 2025, Pembina Imports Inc. reported this information on its balance sheet.Accounts receivableLess: Allowance for expected credit losses1.During 2025, the company had the following summary transactions related to receivables and sales. Pembina uses the perpetualinventory system. Pembina expects a return rate of 3%.2.3.4.$696,0005.44,800Sales on account amounted to $2,800,000. The cost of the inventory sold was $2,100,000.Goods with a total sales price of $44,800 and a cost of $33,600 were restored to inventory.Collections of accounts receivable were $2,464,000.Write-offs of accounts receivable deemed uncollectible, $50,400.Recovery of credit losses previously written off as uncollectible, $16,800. (d)Calculate the receivables turnover ratio and average collection period. (Round receivables turnover to 1 decimal place, e.g.5.2. Round average collection period to nearest whole day, e.g. 15.)Receivables turnover ratioAverage collection periodeTextbook and MediaList of Accountstimesdays

Receivable turnover ratio measures how quickly a company collects payment from its customers. The…

At January 1, 2025, Pembina Imports Inc. reported this information on its balance sheet. $696,000 44,800 Accounts receivable Less: Allowance for expected credit losses During 2025, the company had the following summary transactions related to receivables and sales. Pembina uses the perpetual inventory system. Pembina expects a return rate of 3%

At January 1, 2025, Pembina Imports Inc. reported this information on its balance sheet. $696,000 44,800 Accounts receivable Less: Allowance for expected credit losses During 2025, the company had the following summary transactions related to receivables and sales. Pembina uses the perpetual inventory system. Pembina expects a return rate of 3%

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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