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Unformatted text preview: 2000 cash (+a) 50,000 note receivable (-a) 50,000 PA 4) Dec. 31, 2005 Interest receivable (+a) 300 Interest revenue 300 Bad debt expense (+e,-se) 102,250 allowance for doubtful accounts (+xa,-a) 102,250 Allowance for doubtful accounts (-xa,+a) 102,250 accounts receivable (-a) 102,250 Interest receivable (+a) 300 interest revenue (+r,+se) 300 Notes receivable (+a) 120,000 sales in exchange for notes (+r,+se) 120,000 PA 5) 1) 2002 coca-cola turnover ratio: 9.2 days to collect: 39.6 pepsi turnover ratio: 9.7 days to collect: 37.6 2003 coca-cola turnover ratio: 10 days to collect: 36.5 pepsi turnover ratio: 9.4 days to collect: 39 Coca cola has a little advantage to turn its' receivables into money first. 2) coca-cola seems more consistent in its doubtful accounts, but they both seem to be gaining some optimism in their abilities to collect the receivables....
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