Question

At December 31, 2021, Splish Brothers Inc. reported this information on its balance sheet.

Accounts receivable		$581,000
Less: Allowance for doubtful accounts		37,000

During 2022, the company had the following transactions related to receivables.

1.		Sales on account		$2,355,000
2.		Sales returns and allowances		49,000
3.		Collections of accounts receivable		2,050,000
4.		Write-offs of accounts receivable deemed uncollectible		38,000
5.		Recovery of bad debts previously written off as uncollectible		16,000

Compute the accounts receivable turnover and average collection period, assuming the expected bad debt information provided in (c). (Round answers to 1 decimal place, e.g. 25.2.)

Accounts receivable turnover		enter the Accounts receivable turnover ratio in times rounded to 2 decimal places	times
Average collection period		enter the average collection period in days	days

Answer 1