Accounts Receivable T/O

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  • April 21, 2012 at 9:43 pm #169738
    Anonymous
    Inactive

    I understand AR T/O is Net credit sales / Average receivables(Net).

    Are allowance for uncollectible AR reduced from AR to arrive at Net AR?

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  • April 21, 2012 at 10:19 pm #344445
    Anonymous
    Inactive

    Yes. If you need the Net A/R for a formula then you subtract the Allowance for Doubtful Accounts.

    April 23, 2012 at 2:01 am #344446
    Anonymous
    Inactive

    Beckers answer to A4 Question CPA-05905 is not taking net AR (AR less allowance for uncoll A/R) in AR T/O formulae. Is this an error?

    May 19, 2012 at 12:19 am #344447
    Anonymous
    Inactive

    Even I think this is an error on part of becker. In the AR T/O ratio (Cr Sales/(AR – allow from uncollectible) formula beckers did not subtract the allow from uncoll in the denominator. Can some one here please confirm if this is an error

    May 19, 2012 at 4:16 pm #344448
    lacpa2012
    Member

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