AccountsDays SalesReceivableUncollectedTurnoverCompute the days' sales uncollected.Numerator:Days' Sales UncollectedDenominator:Accounts receivableCost of goods soldNet salesDaysDays' Sales Uncollected=Days' sales uncollecteddays< Accounts Receivable TurnoverDays Sales Uncollected > Mifflin Company reported the following for the current year:Net salesCost of goods soldBeginning balance in accounts receivable$ 70,95043,00015,0006,500Ending balance in accounts receivableCompute (a) accounts receivable turnover and (b) days' sales uncollected. Hint. Accounts receivable turnover uses average accountsreceivable, and days' sales uncollected uses the ending balance in accounts receivable.Complete this question by entering your answers in the tabs below.AccountsReceivableTurnoverDays SalesUncollectedCompute the accounts receivable turnover.Accounts Receivable TurnoverNumerator:1Denominator:=Accounts Receivable Turnover1=Accounts receivable turnoverAverage accounts receivablents Receivable TurnoverCost of goods soldNet sales=timesDays Sales Uncollected >

Accounts Receivable Turnover :— It is the ratio between net sales and average accounts receivable.…

Answered: Compute (a) accounts receivable…

Business

Accounting

Compute (a) accounts receivable turnover and (b) days' sales uncollected. H

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: Which of the following is not a correct statement? Accounts receivable represents credit sale,…

A: Account recievable is a current asset that shows the amount to be recieved by the debtors that have…

Q: Which of the following accounts is not normally part of the revenue and collection cycle?a. Sales.b.…

A: Revenue and collection cycle is business process related to the products delivery and collection of…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

Q: How do you calculate accounts receivable turnover? Select an answer. Take the beginning A/R balance,…

A: The accounts receivables turnover ratio is a sub-category of activity ratios, which indicates the…

Q: Which of the following assumptions is assumed in the percent of sales forecasting method? All…

A: The percentage of sales forecasting method is a financial forecasting technique that uses historical…

Q: What does the days’ sales in receivables indicate, and how is it calculated?

A: Day's Sales: Day's sales refer to the average number of days for which a receivable remain…

Q: 16. Which of the following is a contra account? a. Sales discounts b. Purchase returns and…

A: In accounting, a contra account is a unique kind of account that is used to lower the balance of a…

Q: What entry format is appropiate if sales returns and allowances occur on factored accounts? a.…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: 10. The following are supporting schedules, except: * A. Summary of adjusting entries B. Cash count…

A: Supporting schedules are the schedules or working that is being attached to the balance sheet and…

Q: 4. Which of the following is not a quick asset? c. Accounts Receivable d. Inventory a. Cash b. Cash…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: The accounts related to the revenue cycle include all of the following except: A.…

A: Revenue cycle generally consist of 1.order received from the customer 2. process customer order…

Q: In a perpetual system, what would be the journal entry for a sales return. (a) Dr. Sales return and…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…

Q: The Sales Returns and Allowances account is reported as a

A: Sales Return refers to the process of returning goods by a customer back to the company or…

Q: Dividing net sales on account by the average amount of net accounts receivable is the calculation…

A: Formula: Net sales = Sales - sales returns Deduction of sales returns from the sales derives the net…

Q: 6) Which of the following are the normal baiances of Sales, Sales discounts, and Sales returms and…

A: Introduction: Accounting: Accounting is an art of recording , classifying and summarising and…

Q: Which type of checking account pays interest on the mean balance of the account during a particular…

A: The checking account are important part of banking system. A checking account is highly liquid…

Q: The Direct Write-off method is the preferred method of accounting for uncollectible accounts…

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

Q: An example of a frequency distribution was a: A.inventory analysis B.accounts receivable aging…

A: Frequency distribution analysis:- A frequency distribution is a representation, either in a…

Q: Indicate using a (1), (−), or (0) whether each of the following events would probably cause accounts…

A: Several actions have been given. We have to assess the impact of these actions qualitatively on…

Q: Which of the statements below is TRUE? a. Receivables turnover is accounts receivable divided by…

A: All turnover ratios are calculated over sales. The numerator will the sales or cost of goods sold…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

100%

Accounts
Days Sales
Receivable
Uncollected
Turnover
Compute the days' sales uncollected.
Numerator:
Days' Sales Uncollected
Denominator:
Accounts receivable
Cost of goods sold
Net sales
Days
Days' Sales Uncollected
=
Days' sales uncollected
days
< Accounts Receivable Turnover
Days Sales Uncollected >

Mifflin Company reported the following for the current year:
Net sales
Cost of goods sold
Beginning balance in accounts receivable
$ 70,950
43,000
15,000
6,500
Ending balance in accounts receivable
Compute (a) accounts receivable turnover and (b) days' sales uncollected. Hint. Accounts receivable turnover uses average accounts
receivable, and days' sales uncollected uses the ending balance in accounts receivable.
Complete this question by entering your answers in the tabs below.
Accounts
Receivable
Turnover
Days Sales
Uncollected
Compute the accounts receivable turnover.
Accounts Receivable Turnover
Numerator:
1
Denominator:
=
Accounts Receivable Turnover
1
=
Accounts receivable turnover
Average accounts receivable
nts Receivable Turnover
Cost of goods sold
Net sales
=
times
Days Sales Uncollected >

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to accounts receivable turnover

VIEW

Step 2: Working for average accounts receivable

VIEW

Solution

VIEW

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

Which following statement is a correct statement about the direct write-off method for calculating credit loss expense? A. It is in accordance with GAAP. B. It uses an allowance for credit losses account. C. It tends to understate accounts receivable on the balance sheet. D. It recognizes credit loss expense when a specific account is determined to be uncollectible.
If a fictitious sale has been recorded, this affects the a) existence of sales. b) valuation of accounts receivable. c) occurrence of sales and existence of accounts receivable. d) occurrence of accounts receivable.
Need all the required, please and thank you ! very important
Which of the following items in the balance sheet does NOT have a constant relationship with sales in general when we use the percent of sale method to construct pro forma financial statements? Retained earnings Inventory Accounts receivables Accounts payables
26. Given the following financial data for Alpha Company, calculate the ratios listed below the data. (Compute all ratios and percents to 2 decimal points.) Sales (all on credit) Cost of Goods Sold $650,000 422,500 Income before 78,000 Income Taxes Net Income 54,600 Ending Beginning Balances Balances Cash $19,500 $15,000 Accounts Receivable 65,000 59,800 (net) Merchandise 71,500 66,300 Inventory Plant and Equipment (net) 195,000 183,900 Total Assets $351,000 $325,000 Current $74,100 $100,200 Liabilities Long-Term Notes Payable 97,500 100,000 Stockholders' 179,400 124,800 Equity Total Liabilities and Stockholders' $351,000 $325,000 Equity
A bank that is examining the ratio of annual costs of goods sold to average inventory, is examining which category of ratios? a.Profit measures b.Operating efficiency measures c.Liquidity measures d.Expense control measures
Which of the following statements about receivables turnover is false? Receivables turnover measures the efficiency of the firm in managing and selling inventory Receivables turnover measures the liquidity of the firm's receivables Receivables turnover is calculated with revenue in the numerator A low receivables turnover indicates efficient receivables management
From page 5-2 of the VLN, which of the following accounts are subtracted from sales to compute Net sales? Allowance for uncollectible accounts Deferred revenue Sales discounts Sales returns and sales allowances Accumulated depreciation Trade discount
Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level
In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method? a.) percentage of sales method b.) direct write-off method c.) analysis of receivables method d.) both percentage of sales and analysis of receivables methods
If sales were overstated by recording a false credit sale at the end of the year, where could you find the false “dangling debit”?a. Inventory.b. Cost of goods sold.c. Bad debt expense.d. Accounts receivable.
Which of the following calculations of receivable turnover is correct? A. Number of days in the year divided by receivable turnover. B. Net sale on account divided by average receivables. C. Cost of goods sold divided by average inventory. D. Net income divided by net sales.