Mervyn's Fine Fashion has an average collection period of 30 days. The accounts receivable balance is $45,000. What is the value of credit sales? (Use 365 days in a year. Round the final answer to the nearest whole dollar.) Credit sales

Mervyn's Fine Fashion has an average collection period of 30 days. The accounts receivable balance is $45,000. What is the value of credit sales? (Use 365 days in a year. Round the final answer to the nearest whole dollar.) Credit sales

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 10EB: My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the...

See similar textbooks

Related questions

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Variables in the question:Balance=$700Rate(r)=17%Payment=$650Assume 365 days in a year

Q: ABCD Corporation has credit sales of $8,460,000 and receivables of $1,260,000. Assume there are 365…

A: Ratio analysis is one of useful technique used. Under this, various calculations are done on…

Q: New receivable balance c-1. If Maddox reduces its bank loans, which cost 12 gain or loss to the…

A: Accounts receivable is the total amount that is to be received from a customer in exchange for goods…

Q: Medwig Corporation has a DSO of 20 days. The company averages $3,500 in sales each day (all…

A: Accounts receivables are the money due towards the customers but not yet paid. The accounts…

Q: Receivables Investment Medwig Corporation has a DSO of 30 days. The company averages $7,750 in sales…

A: The objective of the question is to calculate the average accounts receivable for Medwig Corporation…

Q: ABCD Corporation has credit sales of $10,290,000 and receivables of $1,560,000. Assume there are 365…

A: In this we have to calculate the receivable turnover ratio using the formula.

Q: Medwig Corporation has a DSO of 17 days. The company averages $7,750 in sales each day (all…

A: Accounts receivable are the people who owe the company. In simple words these are the people who…

Q: ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units at P2,500 each throughout the…

A: ABC sells on credit terms of 2/10, n/30. Daily sales average = 200 units Sale price = P2500 each All…

Q: Sanders' Prime Time Lighting Co. has credit sales of $2,232,000 and accounts receivable of $409,200.…

A: The objective of the question is to calculate the average collection period for Sanders' Prime Time…

Q: Tobin Fisheries currently sells to its customers on terms of 2/11, net 31. Its average collection…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Receivables Investment Medwig Corporation has a DSO of 37 days. The company averages $9,750 in…

A: Accounts Receivables are the money due towards customers but not yet paid on account of goods sold…

Q: Assume that you start with a balance of $3600 on your credit card. During the first month, you…

A: Given Starting balance is $3600 First month charge is $400 Second month charge is $550

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Given information : Time it takes for payment = 10 days Length of month = 30 days Balance = $475…

Q: Medwig Corporation has a DSO of 27 days. The company averages $9,750 in sales each day (all…

A: The objective of the question is to calculate the average accounts receivable of Medwig Corporation…

Q: Dome Metals has credit sales of $342,000 yearly with credit terms of net 45 days, which is also the…

A: The conceptual formula used:

Q: The Jeremy Flores Club has annual revenue of EUR 7 million and all sales are on account. Good credit…

A: 1. Max account receivables = ACP×sales365 =30×7 million365=EUR 575,342

Q: La Resolana, S.A., has credit sales of $180,000 per year, with net payment terms of 30 days, which…

A: Accounts receivables are the current assets of the company which arises due to sale made on credit…

Q: Robie Co. operates 365 days in a year. Its receivable on the average remain uncollected for 73 days.…

A: Average collection period means the average time period with in which the debtor makes the payment.

Q: Medwig Corporation has a DSO of 38 days. The company averages $3,250 in sales each day (all…

A: Days sales outstanding (DSO) is the number of days the firm takes to collect cash from sales .…

Q: ABCD Corporation has credit sales of $12,690,000 and receivables of $1,970,000. Assume there are 365…

A: Question is based on the concept of Financial ratios

Q: Medwig Corporation has a DSO of 36 days. The company averages $8,000 in sales each day (all…

A: DSO means days sales outstanding. It means number of days it takes credit sales to be converted into…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: The average daily balance is the estimation of the amount on which the interest has been calculated…

Q: Medwig Corporation has a DSO of 25 days. The company averages $7,750 in sales each day (all…

A: A financial indicator called average accounts receivable is used to calculate the average amount of…

Q: Sweetens Cove, Incorporated, has weekly credit sales of $69400 and the average collection period is…

A: Company’s receivables can be expressed as its average daily sales multiplied by its average…

Q: Fred's Factory has credit sales of $747,500 and an average accounts receivable balance of $57,500.…

A: Variables in the question:Credit sales=$747,500Average accounts receivable=$57,500Discount=2%=0.02

Q: Medwig Corporation has a DSO of 17 days. The company averages $8,500 in sales each day (all…

A: Days sale outstanding(DSO)/Average collection period(ACP) tells a firm on an average time taken by…

Q: Assume that you start with a balance of $3900 on your credit card. During the first month, you…

A: It is a case where the month-end closing balance of the credit card is required to be calculated for…

Q: Medwig Corporation has a DSO of 32 days. The company averages $8,000 in sales each day (all…

A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Understanding Receivables: ABC sells on credit terms of 2/10, n/30. Daily sales average 200 units…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: ABCD Corporation has credit sales of $10,960,000 and receivables of $1,260,000. Assume there are 365…

Q: Medwig Corporation has a DSO of 24 days. The company averages $7, 750 in sales each day ( all…

A: DSO stands for Days Sales Outstanding which is computed with the help of the following formula, Days…

Q: . Medwing Corporation has a DSO of 19 days. The company averages 5,500 in credit sales each day.…

A: Given: (Days sales outstanding) DSO = 19 days Credit sales = 5,500 Assuming 365 days in a year.

Question

Mervyn's Fine Fashion has an average collection period of 30 days. The accounts receivable balance is $45,000. What is the value
of credit sales? (Use 365 days in a year. Round the final answer to the nearest whole dollar.)
Credit sales

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: Define of Average Collection Period

VIEW

Step 2: Calculation of Average Collection Period

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, finance and related others by exploring similar questions and additional content below.

Similar questions

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?
Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit sales for the year are $567,920. What is the days sales in receivables ratio for 2018 (rounded to the nearest whole number)? A. 190 days B. 109 days C. 110 days D. 101 days
Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and accounts receivable averaged 437,500. Half of Grunewalds customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewalds nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.)
Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. 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.
My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS (Take screenshots) La Resolana, S.A., has credit sales of $180,000 per year, with net payment terms of 30 days, which is also the average collection period. La Resolana does not currently offer any cash discounts, so customers take the 30 days to pay. What is the average accounts receivable balance? What is the accounts receivable turnover?
Greene Sisters has a DSO of 20 days. The company's average daily sales are $30,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Round your answer to the nearest dollar.
A Mikey's sells $119,500 of its accounts receivable to factors at a 1% discount. The firm’s average collection period is one month. What is the dollar cost of the factoring service? Dollar-cost of the factoring service $_________ per month
Assume that you start with a balance of $3600 on your credit card. During the first month, you charge $400, and during the second month, you charge $550. Assume that your credit card charges a 29% APR and that each month you make only the minimum payment of 2.5% of the balance. Complete the following table. (Round your answers to the nearest cent.) Finance Charge (+) Previous Purchases Payments (-) New Balance Balance (+) Month 1 Month 2