The following information is available for Market, Incorporated and Supply, Incorporated at December 31. Accounts Market, Incorporated Supply, Incorporated Accounts receivable $59,800 $77,800 Allowance for doubtful accounts 2,548 2,956 Sales revenue 616,960 907,100 Required What is the accounts receivable turnover for each of the companies? What is the average days to collect the receivables? Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?
The following information is available for Market, Incorporated and Supply, Incorporated at December 31. Accounts Market, Incorporated Supply, Incorporated Accounts receivable $59,800 $77,800 Allowance for doubtful accounts 2,548 2,956 Sales revenue 616,960 907,100 Required What is the accounts receivable turnover for each of the companies? What is the average days to collect the receivables? Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is available for Market, Incorporated and Supply, Incorporated at December 31.
| Accounts | Market, Incorporated | Supply, Incorporated |
|---|---|---|
| $59,800 | $77,800 | |
| Allowance for doubtful accounts | 2,548 | 2,956 |
| Sales revenue | 616,960 | 907,100 |
Required
- What is the accounts receivable turnover for each of the companies?
- What is the average days to collect the receivables?
- Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?
What is the accounts receivable turnover for each of the companies? (Round your answers to 1 decimal place.)
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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.)
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Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? (Round your percentage answers to nearest whole number.)
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