Kerwick Company had accounts receivable of $100,000 on January 1, 2020. the only transactions that affected accounts receivable during 2020 were net credit sales of $1,000,000, cash collections of $920,000, and accounts written off of $30,000.
Instructions
- Compute the ending balance of accounts receivable.
- Compute the accounts receivable turnover for 2020.
- Compute the average collection period in days.
Solution
