At the beginning of 2017, Penman Company had the following (normal) account balances in its financial records: Accounts Receivable $127,000 Allowance for Uncollectible Accounts 9,900 During 2017, its credit sales were $1,173,000 and collections on credit sales were $1,150,000. The following additional transactions occurred during the year: Feb. 17 Wrote off Nissim's account, $3,600. May 28 Wrote off White's account, $2,400. Dec. 15 Wrote off Ohlson's account, $900. Dec. 31 Recorded the provision for uncollectible accounts at 0.8% of credit sales for the year. (Hint: The allowance account is increased by 0.8% of credit sales regardless of any prior write-offs.) Compute and show how accounts receivable and the allowance for uncollectible accounts are reported in its December 31, 2017, balance sheet. Do not use negative signs with your answers. Accounts receivable Less Allowance for uncollectible accounts Accounts receivable, net

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.