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

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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 >

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