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The following information is available for Market, Incorporated and Supply, Incorporated at December 31.   Accounts Market, Incorporated Supply, Incorporated Accounts receivable $59,800 $77,800 Allowance for doubtful accounts 2,548 2,956 Sales revenue 616,960 907,100 Required What is the accounts receivable turnover for each of the companies? What is the average days to collect the receivables? Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?

The following information is available for Market, Incorporated and Supply, Incorporated at December 31.   Accounts Market, Incorporated Supply, Incorporated Accounts receivable $59,800 $77,800 Allowance for doubtful accounts 2,548 2,956 Sales revenue 616,960 907,100 Required What is the accounts receivable turnover for each of the companies? What is the average days to collect the receivables? Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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The following information is available for Market, Incorporated and Supply, Incorporated at December 31.

 

Accounts Market, Incorporated Supply, Incorporated
Accounts receivable $59,800 $77,800
Allowance for doubtful accounts 2,548 2,956
Sales revenue 616,960 907,100


Required

  1. What is the accounts receivable turnover for each of the companies?
  2. What is the average days to collect the receivables?
  3. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?

What is the accounts receivable turnover for each of the companies? (Round your answers to 1 decimal place.)

 
 
 
 
Company Accounts Receivable Turnover
Market   times
Supply   times
 

What is the average days to collect the receivables? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number.)

 
 
 
 
Company Average Collection Period
Market   days
Supply   days
 

Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? (Round your percentage answers to nearest whole number.)

 
 
 
 
Company Estimated Percentage of Uncollectible Accounts
Market   %
Supply   %
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