Mifflin Company reported the following for the current year:   Net sales $ 60,000 Cost of goods sold 38,000 Beginning balance in accounts receivable 14,000 Ending balance in accounts receivable 6,000 Compute (a) accounts receivable turnover and (b) days’ sales uncollected. Compute the accounts receivable turnover.         Accounts Receivable Turnover Numerator: / Denominator: = Accounts Receivable Turnover   /   = Accounts receivable turnover   /   =   times   Compute the days’ sales uncollected.         Days' Sales Uncollected Numerator: / Denominator: × Days = Days' Sales Uncollected   /   ×   = Days' sales uncollected   /   ×   =   days

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Mifflin Company reported the following for the current year:
 

Net sales $ 60,000
Cost of goods sold 38,000
Beginning balance in accounts receivable 14,000
Ending balance in accounts receivable 6,000


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

Compute the accounts receivable turnover.

 
 
 
 
Accounts Receivable Turnover
Numerator: / Denominator: = Accounts Receivable Turnover
  /   = Accounts receivable turnover
  /   =   times

 

Compute the days’ sales uncollected.

 
 
 
 
Days' Sales Uncollected
Numerator: / Denominator: × Days = Days' Sales Uncollected
  /   ×   = Days' sales uncollected
  /   ×   =   days
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