The average collection period determines the number of a.days it takes to sell the inventory. b.times the accounts receivable are collected during the period. c.times the merchandise inventory was sold during the period. d.days credit customers take to pay for their purchases.

Q: The journal entry to record the payment of merchandise on account with a discount under the Periodic…

A: Periodic inventory method: It is a inventory valuation method. In this method inventory account is…

Q: d) Payables payment period in days e)  Number of days inventory on hand 2. Analyse and interpret…

A: Ratio Analysis The purpose pre preparing the Ratio analysis which indicating the strength and…

Q: Activity 9-2 Trade and Cash Discounts On June 1, 2021, De Chavez Groceries sold merchandise with a…

A: Trade discount is the discount offered on the list price with the intention of making sales in bulk…

Q: Merchandise invoiced at $8,900 is sold on terms 1/10, n/30. If the buyer pays within the discount…

A: Income statement is one of the financial statements that shows the profitability, total revenue and…

Q: The journal entry to be recorded by the seller upon receiving payment from a customer who had…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: How do you find the date goods received, last day of the discount period, and end of credit period…

A: Compute the last day of the discount period, and end of credit period:Discount period:In this case,…

Q: Merchandise is sold on account to a customer for $14,100, terms FOB shipping point, 2/10, n/30. The…

A: FOB: FOB stands for free on board. FOB is term that determines the person who is liable for damage…

Q: In a perpetual system, what would be the journal entry for a sales return. (a) Dr. Sales return and…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…

Q: A sales invoice included the following information: merchandise price, $8,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

Q: FOR THE YEAR ENDED 31 DECEMBER FOR THE YEAR ENDED 31 DECEMBER 2016 2017 2018 2019 2020 2021 2022…

A: Since we answer only upto three sub-parts, we shall answer first three. Please resubmit a new…

Q: The Stationery Company purchased merchandise on account from a supplier for $9,300, terms 1/10,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: . The operating cycle is equal to which one of the following?  A.  Inventory period plus the…

A: Operating cycle is computed as follows: Cash operating cycle is computed as follows: Cash…

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

Q: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize…

A: Returning the goods to retailers is called sales returns. This is a properly stated period of time…

Q: Merchandise is sold on account to a customer for $18,300, terms FOB shipping point, 1/10, n/30. The…

A: Accounts receivable:  It is a current asset of an organization. It is the amount due from customers…

Q: calculate number of days sales in inventory

A: Days sales in inventory means number of days it takes the firm to sell off its inventory.  Days…

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/30.…

A: Payment terms 2/10, n/30 means discount of 2% is valid till 10 days from the date of purchase.…

Q: 19. After the posting of the accounts payable ledger and general ledger is completed, the total of…

A: 19 .  The general ledger includes account payable ledger . The accounts payable is the creditor for…

Q: Explain how to calculate day’s sales in receivable.

A: Average collection period: Average collection period indicates the number of days taken by a…

Q: Which one of the following commences on the day inventory is purchased and ends on the day the…

A: Inventory period: It is a measure of the average number of days the inventory is held.

Q: How do you find the date goods are received, last day of discount, and end of credit period when the…

A: Compute the date of goods received:  The invoice is dated for November 27th. Hence, the goods are…

Q: In the periodic inventory system, all purchases of merchandise during the period is recorded on what…

A: There are two type of inventory systems in the business. One is perpetual inventory system and other…

Q: How do I find the turnover and number of days' sales in receivables?

A: a. Computation of accounts receivable turnover: Hence, the accounts receivables turnover is 27…

Q: Record Baker’s November transactions, including the cost of goods sold entries for each sale.…

A: A journal entry is an accounting record that chronologically records a financial transaction. It…

Q: Questions: 1. Accounts receivable turnover (assume all sales are on account) 2. Average collection…

A: Average accounts receivable= (Opening accounts receivable + Closing accounts receivable)/2…

Q: ollowing calculations of receivable turnover is correct? A. Number of days in the year divided by…

A: Solution: Receivable turnover represent the effectiveness of company's ability to collects its…

Q: Complete the following: (Use Table 7.1) Invoice Date goods are received Terms Last day of discount…

A: Invoice Date = June 18 Terms = 1/10, n/30   The corresponding number to June 18 in Table 7-1 is 169.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.