It's average leval of receivables? At year-end, Sally has cash of $8,000, current accounts receivableof $40,000, merchandise inventory of $43,200, and prepaidexpenses totaling $4,600. Liabilities of $32.000 must be paid nextyear. Assume accounts receivable had a beginning balance of$30,000 and net credit sales for the current year totaled $840,000.How many days did it take Sally to collect its average level ofreceivables?a. 15b. 13c. 17d. 30

Step 1: Define Days' Sales In ReceivablesThe number of days that a company requires to convert its…

Answered: At year-end, Sally has cash of $8,000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At year-end, Snow has cash of $16,000, current accounts receivable of $90,000, merchandise inventory of $45,000, and prepaid expenses totaling $4,200. Liabilities of $50,000 must be paid next year. Assume accounts receivable had a beginning balance of $30,000 and net credit sales for the current year totaled $360,000. How many days did it take Snow to collect its average level of receivables? (Assume 365 days/year. Round any interim calculations to two decimal places. Round the number of days to the nearest whole number.) OA. 30 OB. 91 O C. 122 OD. 61
At year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80 comma 000$80,000, merchandise inventory of $ 24 comma 000$24,000, and prepaid expenses totaling $ 5 comma 900$5,900. Liabilities of $ 64 comma 000$64,000 must be paid next year. Assume accounts receivable had a beginning balance of $ 40 comma 000$40,000 and net credit sales for the current year totaled $ 480 comma 000$480,000. How many days did it take StickStick to collect its average level of receivables?
A business issued a 60-day note for $99,000 to a bank. The note was discounted at 7%. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to nearest whole dollar.
White Hat Digital, Inc. starts the year with a credit balance of $3,500 in its Estimated Warranty Payable account. During the year, there were $224,000 in sales and $4,800 in warranty repair payments. White Hat Digital estimates warranty expense at 2% of sales. At the end of the year, what is the balance in the Estimated Warranty Payable account?
Your year end is December 31. You lent $120,000 to another company on Oct 1. If the interest rate is 4%, what is the amount of interest receivable for the current year (rounded to the nearest whole dollar)?
JJ's Company completed the following transactions during the current accounting year ended December 31: March 1: Borrowed $25, 000 on a 2 year, 12% note. Interest is paid annually. April 1: Borrowed cash and signed a $20,000, 2 year, noninterest - bearing note. The market rate of interest for this level of risk was judged by the lender to be 12%. Throughout the year, sold merchandise worth $30, 000 that carried a 2 - year warranty for parts and labor. Jack estimates that the cost of any warranty repairs will be 1.5% of the total sales. As of December 31, actual warranty repair costs were $250. June 1: Jack co signed and guaranteed payment of a $50,000, 14%, 1 year note owed by Bob Corp, one of Jack's suppliers, in order to help them continue to supply Jack's needed parts. Jack believes that default by Bob is only reasonably possible. December sales revenue (excluding sales taxes collected) was $400,000. The sales tax rate is 5%. Jack had already paid the sales taxes owed on all…
Do fast and step by step calculation with explanation for this financial accounting question
A credit card bill for $559 was due on September 14. Purchases of $283 were made on September 19, and $15 was charged on September 28. A payment of $350 was made on September 25. The annual interest on the average daily balance is 21.5%. Find the finance charge due (in dollars) on the October 14 bill. (Use 365 for the number of days in a year. Round your answer to the nearest cent.) $?
A company issues a note receivable in place of an outstanding accounts receivable balance. The note is issued March 1. The amount of the note is $10,000, the interest rate is 4.5% and the term is 2 months. When the note matures May 1, the note plus the interest is paid. Assuming the accounts receivable replacement with the note, and the payment of the note all occurred in the same fiscal year, what impact does this have on the year's financial statements? O no overall impact on assets or profit for the year O total assets increase by $10,000 and profit increases by $75 O total assets and profits increase by $75 O total assets increase by $75 and profit decreases $10,000
During its first year of operations, Gavin Company had credit sales of $3,000,000; $600,000 remained uncollected at year-end. The credit manager estimates that $31,000 of these receivables will become uncollectible Prepare the journal entry to record the estimated uncollectibles. Screen Shot 2020-03-23 at 3.51.19 PM
On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 30- day note with a face amount of $74,400. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 5%.
On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $42,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 7%. $4 b. Determine the proceeds of the note, assuming the note is discounted at 7%.

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