Question
In: Accounting
A company reports the following: Sales $433,620 Average accounts receivable (net) 16,060 Determine (a) the accounts...
A company reports the following:
| Sales | $433,620 |
| Average accounts receivable (net) | 16,060 |
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.
| a. Accounts receivable turnover | |
| b. Number of days' sales in receivables | days |
Solutions
Expert Solution
|
Accounts Receivable Turnover |
||||
|
Numerator |
/ |
denominator |
Accounts Receivable Turnover |
|
|
Net Credit sales |
/ |
Average Accounts Receivable |
Accounts Receivable Turnover |
|
|
$ 4,33,620.00 |
/ |
$ 16,060.00 |
27 |
times |
|
Number of days sales in Receivables |
||||
|
Numerator |
/ |
denominator |
Number of days sales in Receivables |
|
|
Days in year |
/ |
Accounts receivables turnover |
Number of days sales in Receivables |
|
|
365 |
/ |
27 |
13.5 |
days |
ekkarill92 answered 3 years agoRelated Solutions
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payable and accruals, as well as operating costs) are assumed to
change with sales and will maintain their current percentage of
sales rates into 2016. The dividend payout ratio will remain the
same. Long-term debt and notes payable will remain constant into
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plan to issue any additional common stock...
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(cash, accounts receivable, inventory, net fixed assets, accounts
payable and accruals, as well as operating costs) are assumed to
change with sales and will maintain their current percentage of
sales rates into 2016. The dividend payout ratio will remain the
same. Long-term debt and notes payable will remain constant into
2016 as will interest expense, as a result. The firm also does not
plan to issue any additional common stock...
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30-Sep The following information is available: Sales Revenue (net credit sales) 1,200 Accounts Receivable &nb
30-Sep
The following information is available:
Sales Revenue (net credit sales)
1,200
Accounts Receivable
800
Allowance for Doubtful Accounts
15
(credit balance)
Prepare the journal entry assuming that bad debts are expected to
be 6% of accounts receivable.
GENERAL JOURNAL
DATE
ACCOUNT TITLE
DEBIT
CREDIT
Garcia Company has accounts receivable of
$ 2,500
Prepare
the journal entries for the following transactions:
1-Sep
Added 1%
finance charges to $600 company credit card balances for not paying
within 30...
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