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Concept explainers
(a)
Accounting for Receivables:
Receivables are defined as the amounts that are due to a firm by its customers and other parties. Receivables include all those assets that arise due to the primary operations of a firm and those representing cash that is to be collected from all external parties who owe money to the firm.
Receivables are broadly categorized into trade-receivables and non-trade receivables. Trade receivables refer to those receivables that occur due to the sale of goods and services in the normal course of business. Non-trade receivables refer to the amounts that occur due to third parties from transactions outside the primary course of business.
To compute: The ending balance of
(b)
To compute: The accounts receivable turnover for 2017.
(c)
To compute: The average collection period in days.
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Chapter 9 Solutions
Accounting Principles - Standalone book
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