During 2019,Charles Inc

question 4

Essay

During 2019,Charles Inc.recorded credit sales of $2,000,000.Based on prior experience,it estimates a 1 percent bad debt loss rate on credit sales.At the beginning of the year,the balance in net accounts receivable was $150,000.At the end of the year,but before the bad debt expense adjustment was recorded and before any bad debts had been written off,the balance in net accounts receivable was $125,000.
A.Assume that on December 31,2019,the appropriate bad debt expense adjustment was recorded for the year 2019 and accounts receivable totaling $16,000 was written off for the year.What was the accounts receivables turnover ratio for the year?
B.Assume that on December 31,2019,the appropriate bad debt expense adjustment was recorded for the year 2019 and accounts receivable totaling $12,000 was written off for the year.What was the accounts receivables turnover ratio for the year?
C.Explain why the answers to parts A and B differ or do not differ.

---

Definitions:

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in complex behaviors such as decision making, planning, and regulating social behavior.

Integrating Information

The process of synthesizing and combining various pieces of data, knowledge, or insight to form a cohesive understanding or conclusion.

Prefrontal Cortex

A region of the brain located at the front of the frontal lobe, crucial for decision making, cognitive behavior, personality expression, and moderating social behavior.

Synaptic Pruning

The process of eliminating weaker synaptic connections in the brain, making room for stronger, more efficient connections.