Question

Problem 8-1A (Part Level Submission) At December 31, 2018, Bramble Corp. reported the following information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $972,000 82,000 During 2019, the company had the following transactions related to receivables. 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $3,715,300 46,000 2,859,000 91,000 30,000 (a)

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Answer 1

Answers

• Requirement [d]

Accounts receivables Turnover ratio = Net Sales / Average net receivables

>Net sales = $ 3715300 – 46000 = $ 3,669,300
>Average net account receivables

	Beginning balance	Ending balance	Average Accounts receivables, net
Accounts receivables	$972,000	$1,691,300
Allowance account	($82,000)	($151,300)
Net Account receivables	$890,000	$1,540,000	$1,215,000

>Turnover ratio = $ 3669300 / $ 1215000
= 3.02 times