Calculate the Average Collection Period for 2021 using the following information: Net Sales Beginning Accounts Receivable Ending Accounts Receivable 36.5 days 18.25 days 67 days 54.73 days 2021 $100,000 $20,000 $10,000

Calculate the Average Collection Period for 2021 using the following information: Net Sales Beginning Accounts Receivable Ending Accounts Receivable 36.5 days 18.25 days 67 days 54.73 days 2021 $100,000 $20,000 $10,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Calculate Days in Accounts Receivable. Total accounts receivable over 90 days: $18,105.50 A/R :…

A: Days in Accounts receivable is calculated by dividing total Receivables, net of credit by daily…

Q: ABC company's records included the following, assume 365 days in a year: Accounts Receivable,…

A: Average Accounts Receivables = (Beginning Accounts Receivables + Ending Accounts Receivables ) /2…

Q: 2025 ( in millions) account receivable (gross)- 3,800 accounts receivable (net) 3,450…

A: Account receivable means the amount due from customer whom we sold the goods on credit.Allowance for…

Q: Following are data for December 31,2021: $5,365,000 Net sales Cost of sales, and related buying…

A: The ratio analysis helps to analyze the financial statements if the business.

Q: GIVEN: THE ESTIMATED PERCENTAGE OF UNCOLLECTIBLE ACCOUNTS RECEIVABLE FOR THE YEAR 2020 IS 5% THE…

A: Bad debt expense is required to be recorded if it is estimated by the company that a % of gross…

Q: Accounts Receivable Analysis A company reports the following: Sales $562,100 Average accounts…

A: A company's accounts receivable turnover may be defined as the number of times in a given year that…

Q: O 5 days 74 days During 2020, XYZ Inc. sold merchandise for $320,000. The merchandise cost $280,000.…

A: The question is based on the concept of Cost Accounting.Days sales outstanding is calculated by…

Q: Batman Company provides the following data for the year 2020: Cash sales - 500,000; Collection from…

Q: What is LoGo's payables deferral period (DPO)?

A: Payables deferral period (DPO) = Accounts payable/Credit purchases per day It is the number of days…

Q: In 2022, Sandhill Co. has net credit sales of $1,833,000 for the year. It had a beginning accounts…

A: Average collection period is the measure that helps the entity in knowing its efficiency in…

Q: Oman company had $180,000 sales on credit last year. The accounts receivable balance was $14,000…

A: Given: Credit sales = $180,000 Accounts receivables = $14,000

Q: Summary information for a company's accounts receivable is provided below. Accounts receivable…

A: Allowance for uncollectible accounts, also known as the bad debt reserve, is a financial provision…

Q: Using the following select financial statement information from Mover Supply Depot, compute the…

A: Accounts receivables are those customer accounts to whom business has made credit sales on account…

Q: Accounts Receivable Allowance for Doubtful Accounts Road Runner Express reported the following…

A: The ratio is the technique used by the prospective investor or an individual or strategist to read…

Q: The following information relates to Charleston Co.'s accounts receivable for 2021: Accounts…

A: Ending account receivable balance = beginning account receivable balance + sales - cash collected -…

Q: Accounts receivable and uncollectible accounts) The following information relates to Bedford…

A: Accounts receivable are those customer accounts to whom business has made credit sales and amount…

Q: Using the following information and a 360-day year, what is your estimate of the firm's current…

A: To estimate the firm's current receivables period, we use the information provided to calculate the…

Q: ccounts Receivable Analysis: A company reports the following Sales $649,700 64,970 Average accounts…

A: Ratio analysis: It is a method used to measure the liquidity, profitability, efficiency of the…

Q: Calculate the Accounts Receivable Turnover for 2021 using the following information: Net Sales…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of…

Q: Following are data foE Net sales $5,365,000 Cost of sales, and related buying costs Accounts…

A: The ratio analysis helps to analyze the financial statements of the business.

Q: Accounts Receivable Analysis A company reports the following: Sales $192,720 Average accounts…

A: The accounts receivable turnover ratio indicates the efficiency of a company in collecting the…

Q: A company reports the following: Sales $303,680 Average accounts receivable (net) 23,360 Determine…

A: Accounts receivable turnover ratio shows how quickly company is able to collect amount from the…

Q: Based on the following data for the current year, what is the number of days' sales in receivables?…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: What is the number of days’ sales in receivables? Round to one decimal place. Group of answer…

A: Number of days' in receivables Days Sales Outstanding (DSO) represents the average number of days it…

Q: The following information relevant to accounts receivable is presented for Dharma Initiative (in…

A: The accounts receivable turnover ratio is used to measure the number of times the receivables are…

Q: A company reports the following: Sales $1,180,410 Average accounts receivable (net) 56,210…

A: Given: Sales = $1,180,410 Average accounts receivables = $56,210

Q: Ill Company provides the following data for the year 2020: Cash sales - 500,000; Collection from…

A: The gross sales are calculated as sum of net sales, sales discount and allowance and sales returns.

Q: Calculate for each year the receivable turnover. At the end of 2019, accounts receivable was…

A: Accounts receviable turonover = Net credit sales/ Average accounts receviable Average accounts…

Q: Balance Sheets: Accounts receivable, net Income statements: Sales revenue Receivables turnover ratio…

A: Receivables turnover refers to a financial statistic that indicates how well a firm collects…

Q: On January 1, 2025, Marin Corporation started the year with a balance in Accounts Receivable of…

A: The difference between the balance of accounts receivable and the allowance for doubtful accounts is…

Q: The balances at the end of each year are as follows: December 31, 2019 December 31,2020 $ $…

A: Debit card receivable account is a company's asset, therefore, it is to be shown on the asset side…

Q: NG has the following financial data as of December 31, 2019: Gross sales = P250,000.00 Sales…

A: Accounts receivable turnover ratio is calculated by dividing days in a year by average collection…

Q: A company reported the following items for 2020: Accounts receivable balance, beginning of the…

A: Allowance for Uncollectible Accounts - Allowance is a contra ledger account prepare to account…

Q: In 2020, Sahara Company has net credit sales of $923,795 for the year. It had a beginning accounts…

A: Formula: Accounts receivable Turnover = Net Credit sales / Average Accounts receivable Average…

Q: company reports the followin Sales $890,600 Average accounts receivable (net) 44,530 Determine (a)…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: What is Disney's Average Collection Period for the year ending 9/30/2019 using Yahoo finance data?…

A: Average collection period is the period required to collect cash money from the customers which is…

Q: 7. Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…

A: In order to increase the sales revenue, the business entity sold the goods on a credit basis. Out of…

Q: Summary information for a company's accounts receivable is provided below. Accounts receivable…

A: The provision for bad debts, sometimes referred to as the allowance for doubtful accounts or…

Q: se the following selected financial statement information from Black Water Industries. BLACK WATER…

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: Compound = n = Monthly = 12Annual Percentage Rate = APR = 19%

Q: Following are data for December 31,2021: Net sales $5,365,000 Cost of sales, and related buying…

A: Inventory turnover = cost of goods sold/ average Inventory

Question

Calculate the Average Collection Period for 2021 using the following
information:
Net Sales
Beginning Accounts Receivable
Ending Accounts Receivable
36.5 days
18.25 days
67 days
54.73 days
2021
$100,000
$20,000
$10,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Calculation

VIEW

Analysis of Options and Conclusion.

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Walmart Inc (WMT) has the following excerpts from their financial statements January 31, 2022 January 31, 2021 Net Receivables * (in $ Millions) 8,280 6,516 *Net Receivable = Gross receivable minus Allowance Walmart’s fiscal year “FY22” is defined as the period between February 1, 2021 – January 31, 2022 Gross (Accounts) Receivables, January 31, 2022: $9,265 Million Gross Receivables, January 31, 2021: $7,421 Million Accounts Written-off in FY 22 $221 Million 2% of credit sales is assumed to be uncollectable CALCULATE The ending balance of Allowance for uncollectable accounts as of January 31, 2022 Bad Debt Expense for the fiscal year ending on January 31, 2022. Collections during FY22
In 2020, HK company has net credit sales of 925,000$ for the year. It had a beginning account receivable (net) balance of 38,000$ and an ending account receivable (net) balance of 36,000$, account receivable turnover (average collection period) in days is O a. 14.4 b. 16.4 O C. 12 O d. 13
Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days’ sales in receivables ratio for 2018 (round all answers to two decimal places)?
Joseph Co. reported the following financial information for 2020: Accounts receivable, January 1, 2020 P1,200 Accounts Receivable, December 31, 2020 250 Cash collection from customer on account 1,300 Joseph Co.’s service revenue rendered on account to clients amounted to
In 2020, HK company has net credit sales of 925,000S for the year. It had a beginning accountreceivable (net) balance of 38,000$ and an ending account receivable (net) balance of 36,000$. The HK company account receivable turnoveris a. 24.3 Ob. 25.7 Dic. 25 d. 22
As of December 31, 2017 Cash $ 17,900 Accounts payable $ 29,500 Accounts receivable $ 39,600 Notes payable 15,400 Less: Allowance for doubtful accounts 3,200 36,400 Unearned revenue 3,800 Inventory 61,100 Total current liabilities $ 48,700 Prepaid expenses 7,400 Total current assets $ 122,800 The following errors in the corporation's accounting have been discovered: Keane collected $ 5,200 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company's controller recorded the amount as revenue. 1. The inventory amount reported included $ 2,300 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $ 1,600 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 2. Sales for the first day in January 2018 in the amount of $ 11,100 were entered in the sales journal as of December 31, 2017. Of these, $ 7,000 were sales on…
What should be the age of receivables in 2021?
Number 5
Bricker Corp. estimates the allowance for uncollectible accounts at 3% of the ending balance of gross accounts receivable. During 2024, Bricker's credit sales and collections were $106,000 and $147,000, respectively. What was the balance of gross accounts receivable on January 1, 2024, if $90 in accounts receivable were written off during 2024 and if the allowance account had a balance of $630 on December 31, 2024?
Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. - Accounts Recievable turnover ratio=? (times) Compute 3M’s average collection period for accounts receivable in days - Average collection period =? (days)
John Lee Wholesale provides the following information: Accounts Receivable - 01/07/2020 $150 Accounts Receivable - 30/06/2021 900 Cash received from accounts receivable 8,050 What would be the credit sales for the year? Select one: 8,950 750 8,800 1,050
Bulalugaw's net sales for 2020 is 240,000. 30% of it was on credit. In 2019 their accounts receivable is 32,000 and 58,000 on 2020. How many times were they able to collect their recievables?