What is the amount of the receivables expected to be collected?
Average Collection Period:
When a company makes credit sales, the accounts receivable is debited and the sales revenue is credited. The time that the company takes to convert its receivables into cash is referred to as average collection period. It is computed by dividing 365 days with the receivables turnover. When the accounts receivable become uncollectible they are written off as bad debts.
Answer and Explanation: 1
The amount of receivables expected to be collected represents the net realizable value.
The bad debt expense represents the...
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fromChapter 7 / Lesson 1
Learn what accounts receivables are and why they're important. Understand the definition of accounts receivable, look at different types of accounts receivable, and examine examples.