Ordonez Lumber Yard has a current accounts receivable balance of $439,016. Credit sales for the year...

Ordonez Lumber Yard has a current accounts receivable balance of $439,016. Credit sales for the year just ended were $5,384,500.

What is the receivables turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Receivables turnover _______ times

What is the days’ sales in receivables? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Days’ sales in receivables ________ days

How long did it take on average for credit customers to pay off their accounts during the past year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Average collection period ______ days

Expert Solution

Receivable turnover ratio = Net credit sales / Accounts receivable

= 5,384,500/439,016

= 12.26 times

Days sale in receivables =( Accounts receivable / Net credit sales)*365

= (439,016/5,384,500)*365

= 5.30 days

Average collection period = 365/Account receivable turnover ratio

= 365/12.26

= 29.77 days

jeff jeffy answered 2 years ago

Trout Lumber Yard has a current accounts receivable balance of $440,016. Credit sales for the year...

Trout Lumber Yard has a current accounts receivable balance of $440,016. Credit sales for the year just ended were $5,153,850. What is the receivables turnover? What is the days’ sales in receivables? How long did it take on average for credit customers to pay off their accounts during the past year?

4. Vitron Corp. has a current accounts receivable balance of $483,810. Credit sales for the year...

4. Vitron Corp. has a current accounts receivable balance of $483,810. Credit sales for the year ended were $5,700,000. What is the receivables turnover? The days’ sales in receivables? (10 Points) (Use Excel and Excel Formulas)

Twist Corp. has a current accounts receivable balance of $328,800. Credit sales for the year just...

Twist Corp. has a current accounts receivable balance of $328,800. Credit sales for the year just ended were $4,192,200. a. What is the company's receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) b. What is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) c. How long did it take on average for credit customers to...

Twist Corp. has a current accounts receivable balance of $417,615. Credit sales for the year just...

Twist Corp. has a current accounts receivable balance of $417,615. Credit sales for the year just ended were $2,948,600. a. What is the receivables turnover? b. What is the days' sales in receivables?

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $680,000; Allowance for Doubtful Accounts has a debit balance of $6,000; and sales for the year total $3,060,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $840,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and sales for the year total $3,780,000. Bad debt expense is estimated at 3/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $895,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $4,030,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. $ 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...

At the end of the current year, the accounts receivable account has a debit balance of...

At the end of the current year, the accounts receivable account has a debit balance of $932,000 and sales for the year total $10,570,000. The allowance account before adjustment has a debit balance of $12,600. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a debit balance of $12,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $40,300. The allowance account before adjustment has a credit...

At the end of the current year, Accounts Receivable has a balance of $969,540 Allowance for...

At the end of the current year, Accounts Receivable has a balance of $969,540 Allowance for Doubtful Accounts has a credit balance of $5,287 and sales for the year total $2,224,000. Bad debt expense is estimated at ½ of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $ Allowance for Doubtful Accounts...

At the end of the current year, the accounts receivable account has a debit balance of...

At the end of the current year, the accounts receivable account has a debit balance of $1,095,000 and sales for the year total $12,420,000. The allowance account before adjustment has a debit balance of $14,800. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a debit balance of $14,800. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $47,400. The allowance account before adjustment has a credit...

Question

Ordonez Lumber Yard has a current accounts receivable balance of $439,016. Credit sales for the year...

Solutions

Expert Solution

Related Solutions

Trout Lumber Yard has a current accounts receivable balance of $440,016. Credit sales for the year...

4. Vitron Corp. has a current accounts receivable balance of $483,810. Credit sales for the year...

Twist Corp. has a current accounts receivable balance of $328,800. Credit sales for the year just...

Twist Corp. has a current accounts receivable balance of $417,615. Credit sales for the year just...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

At the end of the current year, the accounts receivable account has a debit balance of...

At the end of the current year, Accounts Receivable has a balance of $969,540 Allowance for...

At the end of the current year, the accounts receivable account has a debit balance of...