Accounts Payable 420 Accounts Receivable 3,200 Capital Stock 240 Cash 100 Cost of Goods Sold 600...

Accounts Payable	420
Accounts Receivable	3,200
Capital Stock	240
Cash	100
Cost of Goods Sold	600
Inventory	380
Long-term Debt	4,640
Net Income	280
Property, Plant, and Equipment (net)	1,400
Retained Earnings	(220)
Sales	3,000

Note: The retained earnings amount reported is as of the END of the year (after the closing entries have been made).

Compute AVERAGE COLLECTION PERIOD (also called NUMBER OF DAYS’ SALES IN ACCOUNTS RECEIVABLE). Note: If you need to compute the average balance for any account, assume that the beginning-of-year balance is the same as the end-of-year balance reported above.

Group of answer choices

342.2 days

194.7 days

31.9 days

93.8 days

389.3 days

Expert Solution


NUMBER OF DAYS’ SALES IN ACCOUNTS RECEIVABLE = Average accounts Receivable / Average daily sales
		=3200/8.22
			=389.3 Days


Average accounts receivable = (Opening Receivable + Closing receivable )/2
=(3200+3200)/2
=3200


Average Daily sales = Annual sales / No. of days in a year
=3000/365
	8.22

ekkarill92 answered 2 years ago

company uses the following accounts: Cash Income Taxes Payable Accounts Receivable Capital Stock Prepaid Rent Retained...

company uses the following accounts: Cash Income Taxes Payable Accounts Receivable Capital Stock Prepaid Rent Retained Earnings Unexpired Insurance Dividends Office Supplies Income Summary Rental Equipment Rental Fees Earned Accumulated Depreciation: Salaries Expense Rental Equipment Maintenance Expense Notes Payable Utilities Expense Accounts Payable Rent Expense Interest Payable Office Supplies Expense Salaries Payable Depreciation Expense Dividends Payable Interest Expense Unearned Rental Fees Income Taxes Expense Dec. 1 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for...

Accounts Receivable 250,000 Accounts Payable 260,000 Capital Surplus 100,000 Cash 190,000 Common Stock 300,000 Costs 640,000...

Accounts Receivable 250,000 Accounts Payable 260,000 Capital Surplus 100,000 Cash 190,000 Common Stock 300,000 Costs 640,000 Depreciation Expense 40,000 Dividends 97,500 Net Furniture & Fixtures 200,000 Goodwill 180,000 Interest Expense 50,000 Inventory 175,000 Land 305,000 Line of Credit (used) 200,000 Long Term Loan 340,000 Retained Earnings 100,000 Sales 980,000 Tax rate 21% Shares outstanding 15,000 Find Ratios: Current Ratio 1.34 Total Debt Ratio .615 Earnings Per Share 13.17 Payables Turnover 2.46 Book Value Per Share 33.33 Days Sales in Payables...

Entries Accounts payable Cost of goods sold Factory overhead Factory wages payable Other accounts Raw materials...

Entries Accounts payable Cost of goods sold Factory overhead Factory wages payable Other accounts Raw materials inventory Work in process inventory Starr Company reports the following information for August. Raw materials purchased on account $ 85,800 Direct materials used in production $ 52,400 Factory wages earned (direct labor) $ 17,300 Overhead rate 125 % of direct labor cost Prepare journal entries to record the following events. Raw materials purchased. Direct materials used in production. Direct labor used in production. Applied...

Journalize the business transactions using these accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital;...

Journalize the business transactions using these accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Clay Potter, Capital; Clay Potter, Drawing; Professional Fees; and Operating Expenses. (a) Journalize following transactions of Potter Pool Services for June, identifying each entry by number: Put them into T-accounts for easier creation of a trial balance (1) Potter invested $12,500 cash in the business. (2) Purchased supplies on account, $6,250. (3) Paid operating expenses, $5,500. (4) Billed clients for fees, $7,440. (5) Received cash from...

Insurance Expense $12,000 Accounts Receivable $10,000 Cash 37,000 Notes Payable 15,000 Accounts Payable 13,000 Willis, Capital,...

Insurance Expense $12,000 Accounts Receivable $10,000 Cash 37,000 Notes Payable 15,000 Accounts Payable 13,000 Willis, Capital, Dec. 31, 2018 ? Advertising Expense 2,000 Salaries Expense 21,000 Service Revenue 125,000 Equipment 105,000 Willis, Withdrawals 9,000 Owner contribution 25,000 PrintDone Accent PhotographyAccent Photography works weddings and prom-type parties. The balance of WillisWillis, Capital was $ 18 comma 000$18,000 at DecemberDecember 3131, 20172017. At DecemberDecember 3131, 20182018, the business's accounting records show these balances: LOADING... (Click the icon to view the accounts.) Prepare...

Based on the following data, what is working capital? Accounts payable Accounts receivable Accrued liabilities Cash...

Based on the following data, what is working capital? $$ \begin{array}{lr} \text { Accounts payable } & \$ 30,000 \\ \text { Accounts receivable } & 60,000 \\ \text { Accrued liabilities } & 4,000 \\ \text { Cash } & 60,000 \\ \text { Intangible assets } & 50,000 \\ \text { Inventory } & 69,000 \\ \text { Long-term investments } & 80,000 \\ \text { Long-term liabilities } & 100,000 \\ \text { Marketable securities } & 50,000...

Assets Liabilities and Equity Cash $ 51,000 Accounts Payable $ 23,000 Accounts Receivable 43,000 Common Stock...

Assets Liabilities and Equity Cash $ 51,000 Accounts Payable $ 23,000 Accounts Receivable 43,000 Common Stock 84,000 Land 27,000 Retained Earnings 14,000 Total $ 121,000 Total $ 121,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: Jan. 1 Acquired $46,000 cash from the issue of common stock. Feb. 1 Paid $5,100 cash in advance for a one-year lease for office space. Mar. 1 Paid a $1,900 cash dividend to the stockholders. Apr. 1 Purchased additional land...

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees;...

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees; and Operating Expenses. (a) In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number: (1) Stockholders invested $12,500 cash in the business by purchasing common stock. (2) Purchased supplies on account, $6,250. (3) Paid operating expenses, $5,500. (4) Billed clients for fees, $7,440. (5) Received cash from cash clients, $4,700. (6) Paid creditors on account,...

Accounts payable $18,500 Accounts receivable 8,000 Accumulated depreciation-equipment 4,800 Bonds payable 18,000 Cash 24,000 Common stock...

Accounts payable $18,500 Accounts receivable 8,000 Accumulated depreciation-equipment 4,800 Bonds payable 18,000 Cash 24,000 Common stock 25,000 Cost of goods sold 27,000 Depreciation expense 4,800 Dividends 5,300 Equipment 44,000 Interest expense 2,500 Patents 7,500 Retained earnings, January 1 16,000 Salaries and wages expense 5,200 Sales revenue 50,500 Supplies 4,500 Determine the profitability ratio that tells us for every dollars of sales revenue how much operating profit the firm has generated.And solve for the ratio.

cash collections of accounts receivable will increase and decrease _ 1) accounts payable , accounts...

cash collections of accounts receivable will increase ____ and decrease _____ 1) accounts payable , accounts receivable 2) accounts receivable, accounts payable 3) cash, accounts receivable 4) cast, accounts payable when developring cost functions , which of the following is false 1) the cost funtion must be believable 2) the cost function does not have to be reliable 3) personal observations of cost and activities provide the best evidence of a plausible relationship between a cost and its cost driver...

Question