Scully Company had accounts receivable of €115,000 on January 1, 2014. The only transactions that affected accounts receivable during 2014 were net credit sales of €1,200,000, cash collections of €1,000,000, and accounts written off of €30,000.
Instructions
(a) Compute the ending balance of accounts receivable.
(b) Compute the accounts receivable turnover ratio for 2014.
(c) Compute the average collection period in days.

Question

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The Answer of Scully Company had accounts receivable of €115,000 on January 1, 2014. The only transactions that affected accounts receivable during 2014 were net credit sales of €1,200,000, cash collections of €1,000,000, and accounts written off of €30,000.
Instructions
(a) Compute the ending balance of accounts receivable.
(b) Compute the accounts receivable turnover ratio for 2014.
(c) Compute the average collection period in days.

Scully Company Had Accounts Receivable of €115,000 on January 1