Please answer all three parts Please answer all three parts

Geisel, Inc. reported net sales revenue of $516,000 in 2015 and $817.000 in 2016. The company\'s average net receivables were $113,000 during 2014 and $135,000 during 2015. At December 31. 2016, the compan Doubtful Accounts account of $1,700. The y had Accounts Receivable of $159,000. and an unadjusted debit balance in its Allowance for company reported Bad Debt Expense of $10830 during 2016. Required: a. Determine the net receivables at December 31, 2018. Net receivables b. Calculate the receivables turnover ratio for 2015 and 2018. (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days a year ) 2015 2016 Accounts Receivable Turnover Ratio c. Caiculate the days to collect for 2015 and 2018 Round your intermediate dalouiations and final nswers to 1 decimal place use 365 daysla year 2015 2016 Days to Collect

Solution

a. the net receivables at December 31, 2016 = $159000 + (1700 - 10630 ) = $150070

b. the receivables turnover ratio :Sales / Average Net Accounts Receivables

for 2015 = $516000 / (113000 + 135000 / 2) = 4.16 times

for 2016 = $617000 / (135000 + 150070 / 2 ) = 611000 / 136960 = 4.32 times

c. the days to collection : No. of days / Net Accounts Receivable turnover

for 2015 = 365 / 4.16 = 87.74 days

for 2016 = 365 / 4.32 = 84.49 days