20Y3 2012 $725,000 $650,000 5,637,500 4,687,500 For 2012 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales 2012 counts receivable, end of year les on account Accounts receivable turnover Number of days' sales in receivables The collection of accounts receivable has improved 20Y3 Terms of all sales are 2/10, 1/45. 20Y1 $600,000 - V X days ✓days This can be seen in both the increase 48.7 receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day yea in accounts receivable turnover and the decrease in the collection period.
20Y3 2012 $725,000 $650,000 5,637,500 4,687,500 For 2012 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales 2012 counts receivable, end of year les on account Accounts receivable turnover Number of days' sales in receivables The collection of accounts receivable has improved 20Y3 Terms of all sales are 2/10, 1/45. 20Y1 $600,000 - V X days ✓days This can be seen in both the increase 48.7 receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day yea in accounts receivable turnover and the decrease in the collection period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.
20Y2
$650,000
4,687,500
20Y3
Accounts receivable, end of year
Sales on account
$725,000
5,637,500
a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) 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 yea
20Y2
1. Accounts receivable turnover
2. Number of days' sales in receivables
b. The collection of accounts receivable has improved
20Y1
20Y3
$600,000
✓days
X days
✓ This can be seen in both the increase
48.7
in accounts receivable turnover and the decrease
✓in the collection period.
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