During 2020, Jesse Jericho Enterprises Corporation recorded credit sales of $786,000. At the beginning of the year. Accounts Receivable, Net of Allowance was $93,500. At the end of the year, after the Bad Debt Expense adjustment was recorded but before any bad debts had been written off, Accounts Receivable, Net of Allowance was $70,000 Required: 1. Assume that on December 31, 2020, accounts receivable totalling $10,000 for the year were determined to be uncollectible and written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.) Receivables turnover ratio 2. Assume instead that on December 31, 2020, $11,000 of accounts receivable was determined to be uncollectible and written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.) Receivables turnover ratio
During 2020, Jesse Jericho Enterprises Corporation recorded credit sales of $786,000. At the beginning of the year. Accounts Receivable, Net of Allowance was $93,500. At the end of the year, after the Bad Debt Expense adjustment was recorded but before any bad debts had been written off, Accounts Receivable, Net of Allowance was $70,000 Required: 1. Assume that on December 31, 2020, accounts receivable totalling $10,000 for the year were determined to be uncollectible and written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.) Receivables turnover ratio 2. Assume instead that on December 31, 2020, $11,000 of accounts receivable was determined to be uncollectible and written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.) Receivables turnover ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
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During 2020, Jesse Jericho Enterprises Corporation recorded credit sales of $786,000. At the beginning of the year,
Accounts Receivable, Net of Allowance was $93,500. At the end of the year, after the Bad Debt Expense adjustment was
recorded but before any bad debts had been written off, Accounts Receivable, Net of Allowance was $70,000.
Required:
1. Assume that on December 31, 2020, accounts receivable totalling $10,000 for the year were determined to be
uncollectible and written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.)
Receivables turnover ratio
2. Assume instead that on December 31, 2020, $11,000 of accounts receivable was determined to be uncollectible and
written off. What was the receivables turnover ratio for 2020? (Round your answer to 1 decimal place.)
Receivables turnover ratio
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