Question

The following information is available for Bergstrom Inc. and Sineann Inc. at December 31, 2016:   Accounts...

The following information is available for Bergstrom Inc. and Sineann Inc. at December 31, 2016:


  Accounts

Bergstrom

Sineann

  Accounts receivable

$

56,200

$

76,000

  Allowance for doubtful accounts

2,748

2,356

  Sales revenue

636,960

917,100

Required

a.

What is the accounts receivable turnover for each of the companies for 2016? (Round your answers to 1 decimal place.)

Company

Accounts Receivable Turnover

Bergstrom

times

Sineann

times

b.

What is the average days to collect the receivables for 2016? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to the nearest whole number.)

Company

Average collection period

Bergstrom

days

Sineann

days

c.

Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? (Round your percentage answers to nearest whole number.)

Bergstrom

%

Sineann

%
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Homework Answers

Answer #1
BergStrom Sineann
Accounts Receivable 56200 76000
Allowance for Doubtful Debts Account 2748 2356
Sales Revenue 636960 917100
A Net Sale/Account Receivable
BergStrom 11.3 (636960/56200)
Sineann 12.1 (917100/76000)
B 365/AR Turnover Ratio
BergStrom 32 (365/11.3)
Sineann 30 (365/12.1)
C (Allowance/Account Recievable)
BergStrom 5%
Sineann 3%
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