Using the following information: 12/31/19 $525,000 (40,000) $485,000 Accounts receivable Allowance Cash realizable value During 2020, sales on account were $145,000 and collections on account were $100,000. Also during 2020, the company wrote off $5,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $45,000. 8 The changeibes deerease of kosemuch24lndicate whetherinerease ordeerease) 19. Assuming that total sales for 2020 amount to $2,250,000 with credit sales of $1,800,000, what is the average collection period for the year? the belance a onincrease
Using the following information: 12/31/19 $525,000 (40,000) $485,000 Accounts receivable Allowance Cash realizable value During 2020, sales on account were $145,000 and collections on account were $100,000. Also during 2020, the company wrote off $5,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $45,000. 8 The changeibes deerease of kosemuch24lndicate whetherinerease ordeerease) 19. Assuming that total sales for 2020 amount to $2,250,000 with credit sales of $1,800,000, what is the average collection period for the year? the belance a onincrease
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer number 19, thanks!
Transcribed Image Text:Using the following information:
12/31/19
$525,000
(40,000)
$485,000
Accounts receivable
Allowance
Cash realizable value
During 2020, sales on account were $145,000 and collections on account were $100,000. Also during
2020, the company wrote off $5,000 in uncollectible accounts. An analysis of outstanding receivable
accounts at year end indicated that uncollectible accounts should be estimated at $45,000.
18-The chengeibe
deerease ofhosemuch2(indicatewhetherinerease ordeerease)
19. Assuming that total sales for 2020 amount to $2,250,000 with credit sales of $1,800,000, what is the
average collection period for the year?
thet
san incroasea
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