The following information is from ABC Logistics Corp.'s financial statements (in thousands): 2023: Sales Revenue: $25,000 ⚫ Net Accounts Receivable (end of year): $2,800 2022: • • Net Accounts Receivable (end of year): $2,200 Total Current Assets: $5,500 . Allowance for Doubtful Accounts: $250 ⚫ Gross Accounts Receivable: $2,450 Calculate the accounts receivable turnover and average collection period for 2023.

The following information is from ABC Logistics Corp.'s financial statements (in thousands): 2023: Sales Revenue: $25,000 ⚫ Net Accounts Receivable (end of year): $2,800 2022: • • Net Accounts Receivable (end of year): $2,200 Total Current Assets: $5,500 . Allowance for Doubtful Accounts: $250 ⚫ Gross Accounts Receivable: $2,450 Calculate the accounts receivable turnover and average collection period for 2023.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Surf and Tide. Surf Tide Sales revenue $19,176.1 $10,381 Allowance for doubtful accounts, beginning 78.4 119 Allowance for doubtful accounts, ending 110.8 124 Accounts receivable balance (gross), beginning 2,873.7 1,743 Accounts receivable balance (gross), ending 2,994.7 1,553 Instructions a) Calculate the accounts receivable turnover and average collection period for both companies. My answer for (a) Surf Tide Net Accounts Receivable, beginning (Accounts receivable balance (gross), beginning-Allowance for doubtful accounts, beginning) (2,873.7-78.4) =2,795.3 (1,743-119) =1,624 Net Accounts Receivable, ending (Accounts receivable balance (gross), ending-Allowance for doubtful accounts, ending) (2994.7-110.8) =2,883.9 (1,553-124) =1,429 Average Net Accounts Receivable (Net Accounts Receivable, beginning+Net Accounts Receivable,…
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