Chapter 8, Problem 8.17E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from 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 determine: The amount of cash collection during the period.

(b)

To determine

To discuss: How Corporation B’s decision would affect its quality of earnings ratio.

(c)

To determine

To discuss: The accounting implications regarding Incorporation B’s decision.