The following are the Accounts Receivable Turnover
The following are the Accounts Receivable Turnover
Subject: Business   / Accounting
Question
The following are the Accounts Receivable Turnover Ratios (Net Sales/ Avg. Accounts Receivable) for Kellogg’s Company for 2015 and 2014.
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2015= 10.32 13,525,000,000 / [(1,276,000,000 + 1,344,000,000) / 2]
2014= 10.8 14,580,000,000 / [(1,424,000,000 + 1,276,000,000) / 2]
The following are the Allowance for Doubtful Accounts to Ending Total Accounts Receivable ratios for Kellogg’s Company for 2015 and 2014.
2015= 0.595% ( 7,000,000 / 1,344,000,000 )
2014= 0.549% ( 8,000,000 / 1,276,000,000 )
Given the ratios above, choose the response that best reflects how adequately Kellogg has provided for the allowance for bad debts in 2015. Explain your answer.
Conservative, Expected, or Aggressive
