Question

Calculate the amount of bills receivable during the year.

Answer 1

Explanation:

In order to calculate he amount of bills received during a year, we should know following things

• Beginning of accounts receivable balance
• Ending accounts receivable balance

Once we know this we can calculate the bill receivable during the year as

bill receivable during the year = ((Beginning of accounts receivable balance/Ending accounts receivable balance)/2)

we can also get Account receivable turnover ratio as

= sum of beginning and ending receivable balance/bill receivable during year