Geisel Inc reported net sales revenue of 520000 in 2015 and

Geisel, Inc. reported net sales revenue of $520,000 in 2015 and $625,000 in 2016. The company\'s average net receivables were $112,000 during 2014 and $132,000 during 2015. At December 31, 2016, the company had Accounts Receivable of $161,000. and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,700. The company reported Bad Debt Expense of $8,810 during 2016 Required a. Determine the net receivables at December 31, 2016 Net receivables b. Calculate the receivables turnover ratio for 2015 and 2016. (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days a year.) 2015 2016 Accounts Receivable Turnover Ratio c. Calculate the days to collect for 2015 and 2016. (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days a year. 2015 2016 Days to Collect

Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. a. Net Receivable 31 December 2016 Account Receivable 161000 Less: Allowance for doubtful Accounts (1700+8810) -10510 Net Receivable 31 December 2016 150490 b. Receivable Turnover Ratio 2015 520000/132000           3.94 2016 625000/150490           4.15 c. Days to Collect 2015 365/3.94               93 2016 365/4.15               88