70
Chapter 2
Accounting for Receivables
b) Calculate the days sales outstanding for 2015 and 2016.
c) Compare and discuss the results from parts a) and b).
AP-16B (
5
)
The following information is taken from the records of Hanlan Corporation. Normal credit
terms are 30 days.
2017
2016
2015
Net credit sales
$250,000 $200,000 $190,000
Account receivable
17,500 24,000 32,300
Allowance for doubtful accounts
1,050
960
1,292
Required
a) Calculate the accounts receivable turnover ratio for 2016 and 2017.
b) Calculate the days sales outstanding for the years 2016 and 2017.
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