Garham Company had $360,000 in sales on account last year. The beginning accounts receivable balance was...

Garham Company had $360,000 in sales on account last year. The beginning accounts receivable balance was $20,000 and the ending accounts receivable balance was $36,000. The company's average collection period (age of receivables) was closest to:

		20.28 days.
		28.39 days.
		36.50 days.
		56.78 days.

Expert Solution


Average Collection Period = Average Account Receivable / (Credit Sales / 365)

Average Account receivable
Opening Account receivable =	$ 20,000
Add: Closing Account receivable	$ 36,000
Average Account receivable (A)	$ 28,000

Crdit Sales / 365 = $ 360,000 / 365 Days = (B)	$ 986.30

Average Collection Period =($ 28,000 / $ 986.30 ) A/B =	28.39


Answer = Option 2 = 28.39 Days

ekkarill92 answered 7 months ago

Granger Corporation had $184,000 in sales on account last year. The beginning accounts receivable balance was...

Granger Corporation had $184,000 in sales on account last year. The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $23,000. The corporation's average collection period was closest to: (Round your intermediate calculations to 2 decimal places.) Garrison 16e Rechecks 2017-10-04 Multiple Choice 27.8 days 45.6 days 9.9 days 36.7 days 2. Data from Fontecchio Corporation's most recent balance sheet appear below: Cash $ 40,000 Marketable securities $ 42,000 Accounts receivable $ 113,840 Short-term notes receivable...

Jupiter Corporation had $8,500 balance in accounts receivable at the beginning of the current year. The...

Jupiter Corporation had $8,500 balance in accounts receivable at the beginning of the current year. The beginning balance of allowance for doubtful accounts was $2,000. Early in January, $500 worth of receivable were written off as uncollectible. What is the net realizable value of accounts receivable, after the write off? Select one: a. $7,000 b. $1,500 c. $8,000 d. $6,500 e. $6,000

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800...

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Accounts Receivable Age Amount Proportion Expected to Default Current $22,400 0.01 1–15 days past due...

Benny Company had a beginning balance on January 1, 2019 in Accounts Receivable of $200,000 and...

Benny Company had a beginning balance on January 1, 2019 in Accounts Receivable of $200,000 and a beginning credit balance in the Allowance for Doubtful Accounts of $4,000. During 2019, Drew sold $1,000,000 of goods on credit and collected $800,000. If Drew estimates that 2% of their ending accounts receivable will eventually not be collected, the adjusting journal entry for the Bad Debt Expense will include a credit to Allowance for Doubtful Accounts of A. none of the listed choices...

At December 31, 2019, Bedford Company had a balance of $248,100 in its Accounts Receivable account...

At December 31, 2019, Bedford Company had a balance of $248,100 in its Accounts Receivable account and a credit balance of $900 in its Allowance for Doubtful Accounts account. Bedford analyzed and aged its accounts receivable based on the following estimated uncollectible amounts: Age of Accounts Receivables Balance Estimated % Uncollectible Current $ 130,500 0.6% 31 to 60 day 66,300 2.0% 61 to 90 days 26,700 5.5% Over 91 days 24,600 21.0% Total $248,100 The company bases its provision...

At December 31, 2017, Engel Company had a balance of $770,000 in its Accounts Receivable account...

At December 31, 2017, Engel Company had a balance of $770,000 in its Accounts Receivable account and an unused balance of $7,000 in its Allowance for Doubtful Accounts. The company then analyzed and aged its accounts receivable as follows: Current $468,000 1-60 days past due 244,000 61-180 days past due 38,000 Over 180 days past due 20,000 ------------- Total accounts receivable $770,000 ======== In the past, the company experienced losses as follows: 1% of current balances, 5% of balances 1-60 days past due, 15% of balances 61-180...

1. At the beginning of the year, you had $65,000 in accounts receivable and an allowance...

1. At the beginning of the year, you had $65,000 in accounts receivable and an allowance for doubtful accounts of $6,000 (net realizable value $59,000). During the year you made sales of $600,000, of which 80% were on account, and $12,000 of the sales on account were returned. You collected $430,000 in cash from your customers during the year, wrote off $3,000 in uncollectable accounts, and recovered $1,000 from previous years’ write-offs. What is your bad debt expense for the...

Problem 9 : At the beginning of the year, ABC had $100,000 in Accounts Receivable and...

Problem 9 : At the beginning of the year, ABC had $100,000 in Accounts Receivable and $15,000 in Allowance for Doubtful Accounts. During the year ABC sold $900,000 of product on account and collected $930,000 in cash. In addition, ABC wrote-off $10,000 of outstanding Accounts Receivable because a customer declared bankruptcy. a) Determine the ending balance in Accounts Receivable and Allowance for Doubtful Accounts before any adjusting entry or provision for bad debt expense is recorded. b) Assuming ABC estimates...

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $410,000; allowance for uncollectible accounts at the beginning of the year, $30,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $21,000; cash collections from customers, $1,400,000. Assuming the company estimates that future bad debts will equal 8% of the year-end balance in accounts receivable. 1. Calculate the year-end balance in the allowance for uncollectible accounts....

At the beginning of the current. Blossom company had balances in account receivable of $191,500 and...

At the beginning of the current. Blossom company had balances in account receivable of $191,500 and in allowances for doubtful accounts of $ 9890 (credit). During the period, it had net credit sales of $733,600 and collections of $767,780. It Road off as uncollectible accounts receivable of $7149. However, a $2957 account previously written off as Uncollectible was received before the end of the current period. Uncollectible accounts are estimated to total $25,440 at the end of the period. Omit...

Question