Account receivable turnover In 2023, Tommy Company has net credit sales of$1,450,000 for the year. It had a beginningaccounts receivable (net) balance of $115,000 andan ending accounts receivable (net) balance of$122,000.Compute Tommy Company's:(a) Accounts receivable turnover(b) Average collection period in days

Explanation of Accounts Receivable Turnover:The Accounts Receivable Turnover Ratio measures how…

Answered: In 2023, Tommy Company has net credit…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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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)?
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
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In 2023, Tommy Company has net credit sales of $1,450,000 for the year. It had a beginning accounts receivable (net) balance of $115,000 and an ending accounts receivable (net) balance of $122,000. Compute Tommy Company's: (a) Accounts receivable turnover (b) Average collection period in days