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Question - The following information is available for Hans & Frans Inc. and Church Lady Inc. at December 31:
Accounts
Hans & Frans
Church Lady
Accounts Receivable
$92,500
$220,200
Allowance for Doubtful Accounts
$3,250
$8,100
Sales Revenue
$716,500
$1,978,200
Required -
a. What is the accounts receivable turnover for each of the companies?
b. What is the average days to collect the receivables for each company?
c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?
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