Textbook: Accounting Principles 9th edition, ISBN 978-0470-31754-9, Weygandt
Bledel Company had accounts receivable of $100,000 on January 1, 2010. The only transactions that affected accounts receivable during 2010 were net credit sales of $1,000,000; cash collections of $900,000 and accounts written off of $30,000.
Q1. Compute the ending balance of accounts receivable on 12/31/10.
Q2. Compute the accounts receivable turnover ratio for 2010.
Q3. Computer the average collection period in days.