The following information is available for Market, Incorporated and Supply, Incorporated at December 31: Supply, Incorporated $ 75,400 2,256 867,100 Accounts. Accounts receivable Allowance for doubtful accounts Sales revenue Market, Incorporated $ 56,200 2,248 606,960 Required: 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.
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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.
![The following information is available for Market, Incorporated and Supply, Incorporated at December 31:
Supply,
Incorporated
$ 75,400
2,256
867,100
Accounts
Accounts receivable
Allowance for doubtful accounts
Sales revenue
Required:
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?
Note: Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number.
Average Collection
Company
Market,
Incorporated
$ 56,200
2,248
606,960
Market
Supply
Period
days
days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48c678a2-3b14-49d7-982a-3e75674a6683%2F1417fd4c-9866-465a-a5f7-a214ba2e3fc1%2Fs1ueet_processed.jpeg&w=3840&q=75)
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