Beginning of the year Accounts Receivable balance was $15,000. Net sales were $100,000 ...
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Accounting
Beginning of the year Accounts Receivable balance was $15,000.
Net sales were $100,000
Collections on accounts receivable during the year were $70,000.
Jones is planning to factor some accounts receivable at the end of the year. Accounts totaling $25,000 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 5% of the balances for probable adjustments and assesses a finance charge of 4%. The fair value of the recourse obligation is $1,200.
Compute Joness accounts receivable turnover for the year, assuming the receivables are sold.
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