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d.
Bad Debts Expense
10,000
Accounts Receivable
10.
10,000
The receivables turnover ratio
a. Is computed by dividing net credit sales for the accounting period
by the cash realizable value of accounts receivable on the last day of the
accounting period.
b. Can be used to compute the average collection period.
c. Is a method of evaluating the solvency of net accounts receivable.
d. Is only important to internal users of accounting information.
11.
A measure of a company’s solvency is the