Mifflin Company reported the following for the current year: Net sales$ 60,000Cost of goods sold38,000Beginning balance in accounts receivable14,000Ending balance in accounts receivable6,000Compute (a) accounts receivable turnover and (b) days’ sales uncollected.Compute the accounts receivable turnover. Accounts Receivable TurnoverNumerator:/Denominator:=Accounts Receivable Turnover / =Accounts receivable turnover / = times Compute the days’ sales uncollected. Days' Sales UncollectedNumerator:/Denominator:×Days=Days' Sales Uncollected / × =Days' sales uncollected / × = days

Name: Mifflin Company reported the following for the current year: Net sales
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Mifflin Company reported the following for the current year: Net sales$ 60,000Cost of goods sold38,000Beginning balance in accounts receivable14,000Ending balance in accounts receivable6,000Compute (a) accounts receivable turnover and (b) days’ sales

In this question, we need to compute the following: Accounts Receivable Turnover Days’ Sales Uncollected For calculating both of these, we need to compute the average accounts receivable. Average Accounts Receivable = (Beginning balance in accounts receivable + Ending balance in accounts receivable) / 2 = ($ 14,000 + $ 6,000 ) / 2 = $ 20,000 / 2 = $ 10,000.Accounts Receivable Turnover is calculated as below. Hence, the accounts receivable turnover is 6 times.Days’ Sales Uncollected is calculated as below. Hence, the days' sales uncollected is 61 days. It is assumed that 365 days in a year. Happy Reading

Answered: Mifflin Company reported the following…

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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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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