Chapter 7 Group Work x tpx Exercise 7-16A Accounts receivable turnover and avera

Question

Chapter 7 Group Work x tpx Exercise 7-16A Accounts receivable turnover and average days to collect accounts recelvable L The following information is available for Bergstrom Inc and Sineann Inc. at December 31, 2016 Accounts receivable Alowance for doubtful accounts Sales revenue S 56,200 S 76,000 2,656 2,648 656,960 877,100 Required a. What is the accounts recelivable turnover for each of the companies for 2016? (Round your answers to 1 decimal place.) Company Bergstrom Sineann times b. What is the average days to collect the recelvables for 2016? (Use 365 days in a year. Do not round ntermediate calculations. Round your answers to the nearest whole number.) Bergseom days days c. Assuming both companies use he percent of receivables allowance method, what is the essmated percentage of uncollectible accounts for each company? Round your percentage answers to nearest whole number.) Bergstrom O Type here to search

Explanation / Answer

A. Account Recievable Turnover= sales Revenue/Account receivable

B.Average days collect receivables=Account Recievable/Sales Revenue*365days

C.estimated percentage of uncollectible accounts=allowance for doubtfull accounts/accounts receivables*100

Company Account recievable turnover Bergstrom 656960$/56200$=11.7 Times Sineann 877100$/76000$=11.5 Times

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.