Accounts receivable Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. To calculate: The ending balance of accounts receivable of Company K.

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Chapter 8, Problem 8.17E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period, from the customers, upon the sale of goods, and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

To calculate: The ending balance of accounts receivable of Company K.

(b)

To determine

Accounts receivable turnover:

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In other words, it indicates the number of times the average amount of net accounts receivables collected during a particular period.

To calculate: The accounts receivable turnover ratio of Company K for the year 2019.

(c)

To determine

To calculate: The average collection period of Company K, in days.

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