The Perry Company reported Accounts Receivable, Net of $62,800 at the beginning of the year and...

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The Perry Company reported Accounts Receivable, Net of $62,800 at the beginning of the year and $74,500 at the end of the yea

Creek Co. uses the percentage of credit sales method in determining its bad debt expense. The following information comes fro

business accounting

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Answer 1

Answer #1

Average collection period:

=Average accounts receivables/Net sales*365

Average accounts receivables =$62800+$74500/2=$68650

Collection period =$68650/$914000*365=27.4 days

Option -4

Estimated bad debt expense =Net credit sales*bad debt rate

=$800000*3%

=$24000

Option -3

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Answer 2

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The Perry Company reported Accounts Receivable, Net of $62,800 at the beginning of the year and...