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Questions -
Q1) Which of the following statements is true?
The percentage of net sales method estimates the bad debts expense indirectly.
The accounts receivable aging method estimates the bad debts expense indirectly.
None of the above is true.
The direct write-off method is generally accepted.
Q2) Smith & Sons has net sales of $50,000, a beginning balance in accounts receivable of $5,000, and an ending balance in accounts receivable of $7,000. What is the company's accounts receivable turnover?
6.0
10.0
7.1
8.3
Q3) Smith & Sons has an accounts receivable turnover of nine. What is the company's average collection period?
40.6 days
41.6 days
43.1 days
45.1 days
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