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The following information is available for Market, Inc. and Supply, Inc. at December 31: Accounts Accounts receivable Allowance for doubtful accounts Sales revenue Market, Inc. $ 58,000 2,848 656,960 Supply, Inc. $ 77,200 2,656 927,100

The following information is available for Market, Inc. and Supply, Inc. at December 31: Accounts Accounts receivable Allowance for doubtful accounts Sales revenue Market, Inc. $ 58,000 2,848 656,960 Supply, Inc. $ 77,200 2,656 927,100

FINANCIAL ACCOUNTING
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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Practice help b

a. What is the accounts receivable turnover for each of the companies? b. What is the average days to collect the receivables? c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the average days to collect the receivables? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number.) Company Average Collection Period 32 days 30 days Market Supply
Transcribed Image Text:a. What is the accounts receivable turnover for each of the companies? b. What is the average days to collect the receivables? c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the average days to collect the receivables? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number.) Company Average Collection Period 32 days 30 days Market Supply
The following information is available for Market, Inc. and Supply, Inc. at December 31: Accounts Market, Inc. $ 58,000 2,848 656,960 Supply, Inc. $ 77,200 Accounts receivable Allowance for doubtful accounts 2,656 927,100 Sales revenue
Transcribed Image Text:The following information is available for Market, Inc. and Supply, Inc. at December 31: Accounts Market, Inc. $ 58,000 2,848 656,960 Supply, Inc. $ 77,200 Accounts receivable Allowance for doubtful accounts 2,656 927,100 Sales revenue
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