53
Chapter 2
Accounting for Receivables
AP-15A (
5
)
Wechsler Company has a net accounts receivable opening balance of $250,000 and ending
balance of $300,000. The total sales amount for the year is $1,700,000, of which 80% are on
credit. Normal credit terms are 30 days. Calculate the day sales outstanding and the accounts
receivable turnover. Comment on the calculated ratios.
AP-16A (
5
)
The following information relevant to accounts receivable is presented for Dommar Company
(in thousands of dollars).
2016 2015 2014
Accounts Receivable
$319
$422
$501
Allowance for Doubtful Accounts
19
18
20
Net Credit Sales
$4,377
$3,598
$2,937
Required
a) Calculate the accounts receivable turnover ratio for the years 2015 and 2016.
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