General Accounting question Cool Breeze Ice Cream Trucks operates mobile ice cream services forevents and neighborhoods. The company has annual sales of $275,400.Cost of goods sold averages 52 percent of sales, and the profit marginis 4.8 percent. The average accounts receivable balance is $35,600. Onaverage, how long does it take Cool Breeze to collect payment for itsservices?

Step 1: Define Average Collection PeriodThe average collection period measures the average number of…

Answered: Cool Breeze Ice Cream Trucks operates…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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Please help me ?? General Accounting question
Joey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During Year 1, its first year of operations, Joey's Bike Shop experienced the following. Sales on account Cash sales Collections of accounts receivable Uncollectible accounts charged off during the year $288,300 696,700 273,885 1,413 Required a. Assume that Joey's Bike Shop uses the allowance method of accounting for uncollectible accounts and estimates that 1 percent of its sales on account will not be collected. Answer the following questions: (1) What is the Accounts Receivable balance at December 31, Year 1? (2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, Year 1, after all entries and adjusting entries are posted? (3) What is the amount of uncollectible accounts expense for Year 1? (4) What is the net realizable value of accounts receivable at December 31, Year 1?
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Strom Inc. provided interior design services for $170,000 to customers using debit cards. Assume the bank charges 0.5% for all debit card transactions. Which of the following is correct? Multiple Choice Strom Inc. would have Debit Card expenses in the amount of $850 and Service Revenue of $169,150 Strom Inc. would have Debit Card expenses in the amount of $850 and Service Revenue of $170,000 Strom Inc. would have an increase in Cash of $169,150 and Service Revenue of $169,150 Strom Inc. would have an increase in Cash of $170,000 and Service Revenue of $169,150 None of the choices are correct
Larry’s Lawn Equipment Company gives terms of 2/10, n/30. Larry hasannual credit sales of $500,000 and average accounts receivable of $60,000.a. What is Larry’s accounts receivable turnover?b. What is Larry’s average daily collection?c. What is the relationship between the terms that Larry is giving and hisaverage daily collection?
How many days on average does it take the firm to collect it's accounts receivable on these general accounting question?
The Happy Auto Shop has the following annual information: gross sales,$700,000; net sales, $696,000; and gross profit, $448,000. What are theshop’s returns and allowances and cost of goods sold?
Consider the following transaction: On March 6, Fun Cards sells 540 card decks with a sales price of $7 per deck to Padma Singh. The cost to Fun Cards is $4 per deck. Prepare a journal entry under each of the following conditions. Assume MoneyPlus charges a 2% fee for each sales transaction using its card. A. Payment is made using a credit, in-house account. B. Payment is made using a MoneyPlus credit card.
Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers take credit). What is the companys average accounts receivable?
The Happy Auto Shop has the following annual information: Gross Sales, $700,000; Net Sales, $696,000; Gross Profit, $448,000. What are the shop’s returns and allowances and cost of goods sold? Give an overall detailed response.
The Coffee Hut has an ACP of 30 days, and its annual sales are $5 million. What is its account receivable balance? Multiple Choice $551,781 $410.959 $592,098 $459,021

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