(d) At December 31, 2021, Sunland Company reported this information on its balance sheet. Accounts receivable $592,000 Less: Allowance for doubtful accounts 41,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $2,780,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,480,000 4. Write-offs of accounts receivable deemed uncollectible 44,000 5. Recovery of accounts previously written off as uncollectible 17,000 X Your answer is incorrect. Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles informatio provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.) Accounts receivable turnover Average collection period 3.9 times 93.6 days
(d) At December 31, 2021, Sunland Company reported this information on its balance sheet. Accounts receivable $592,000 Less: Allowance for doubtful accounts 41,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $2,780,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,480,000 4. Write-offs of accounts receivable deemed uncollectible 44,000 5. Recovery of accounts previously written off as uncollectible 17,000 X Your answer is incorrect. Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles informatio provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.) Accounts receivable turnover Average collection period 3.9 times 93.6 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(d)
At December 31, 2021, Sunland Company reported this information on its balance sheet.
Accounts receivable
$592,000
Less: Allowance for doubtful accounts
41,000
During 2022, the company had the following transactions related to receivables.
1.
Sales on account
$2,780,000
2.
Sales returns and allowances
50,000
3.
Collections of accounts receivable
2,480,000
4.
Write-offs of accounts receivable deemed uncollectible
44,000
5.
Recovery of accounts previously written off as uncollectible
17,000
X Your answer is incorrect.
Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles informatio
provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.)
Accounts receivable turnover
Average collection period
3.9
times
93.6
days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20ac9035-d58d-4750-a601-7af490da0f89%2F0a08b806-1660-41c4-9c99-3674fb67598c%2Fzd3t4vh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(d)
At December 31, 2021, Sunland Company reported this information on its balance sheet.
Accounts receivable
$592,000
Less: Allowance for doubtful accounts
41,000
During 2022, the company had the following transactions related to receivables.
1.
Sales on account
$2,780,000
2.
Sales returns and allowances
50,000
3.
Collections of accounts receivable
2,480,000
4.
Write-offs of accounts receivable deemed uncollectible
44,000
5.
Recovery of accounts previously written off as uncollectible
17,000
X Your answer is incorrect.
Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles informatio
provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.)
Accounts receivable turnover
Average collection period
3.9
times
93.6
days
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