The following information relevant to accounts receivable is presented for Dharma Initiative (in thousands of dollars). Calculate the accounts receivable turnover ratio, and the day sales outstanding ratio for theyears 2019 and 2020.Do not enter dollar signs or commas in the input boxes.For accounts receivable turnover, round to one decimal place.For day sales outstanding, round to the nearest whole number.2020Accounts ReceivableAllowance for Doubtful AccountsNet Credit SalesAccounts Receivable Turnover (in number of times) 8.3Day Sales Outstanding (in days)44Date Account Title and ExplanationJan 2To record sale of accounts receivable◆◆$342$18$3,020On January 2, 2021, Dharma Initiative agreed to sell $223,000 of its accounts receivable with a 4% fee paid to the factor. Prepare the journal entry to record the factoring of accounts receivable.Do not enter dollar signs or commas in the input boxes.Enter the debit accounts in alphabetical order.Debitx 7.9x 4620192018$383 $348$22 $25$2,899 $3,161CreditXx

1) 20202019Accounts Receivable Turnover (in number of times)8.88.5Day Sales Outstanding (in…

Answered: The following information relevant to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance account had a balance of $750 on December 31, 2024? A.) $41,000 B.) $480 C.) $99,240 D.) None of these answer choices are correct.
Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $ 125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $180 in accounts receivable were written off during 2021 and if the allowance account had a balance of $750 on December 31, 2021? A) $5,820. B) $31,000. C) $31,180. D) None of these answer choices are correct.
Carter & Evans reported the following rounded amounts (in millions): 2019 $ 5,435 (305) $ 5,130 $ 40,500 2018 $ 5,140 (310) $ 4,830 $ 39,000 Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and days to collect for 2019. 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2018, when the turnover was 9.5?
Suzuki Supply reports the following amounts at the end of 2021 (before adjustment).Credit Sales for 2021 $260,000 Accounts Receivable, December 31, 2021 55,000 Allowance for Uncollectible Accounts, December 31, 2021 1,100 (credit )Required: 1. Record the adjustment for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected. 2. Record the adjustment for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 3% of credit sales will not be collected. 3. Calculate the effect on net income (before taxes) and total assets in 2021 for each method.
On December 31, 2022, Ace Hardware reported the following information on its balance sheet: Accounts Receivable $1,350,000 Allowance for Doubtful Accounts (credit) 81,000 During 2023, the Company had the following transactions related to receivables: Sales on Account Collections on Account Write-offs of uncollectible accounts Recovery of previously written off accounts If bad debts are estimated to be 1.50% of credit sales, determine the ending balance in the Allowance for Doubtful Accounts after adjustment, at the end of 2023: Select one: O $4,500,000 4,275,000 90,000 18,000 a. $67,500 b. $94,500 c. $58,500 d. $76,500 e. $74,250
Your answer is correct. Calculate Maple Leaf's receivables turnover and collection period for 2019 and 2018. (Round receivables turnover to 2 decimal places, e.g. 52.75 and collection period to 1 decimal place, e.g. 52.7. Use 365 days for calculation.) Receivables turnover Collection period 2019 33.75 times 2018 34.81 times 10.81 days 10.48 days (b) Has the company's liquid improved weakened? weakened Company's liquidity has Attempts: 1 of 1 used
Jefferson uses the percent of sales method of estimating uncollectible receivables. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables? a.Bad Debt Expense will be credited. b.Cash will be debited. c.Accounts Receivable will be debited. d.Allowance for Doubtful Accounts will be credited.
A recent annual report for FedEx contained the following data: Numerator Denominator Numerator Denominator (dollars in thousands) Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. Note: Use 365 days a year. Enter your answers in thousands not in dollars. Current Year $ 9,416,000 293,000 $9,123,000 $ 69,703,000 Receivables Turnover Ratio Net sales Average net trade accounts receivable Receivables turnover Average Days Sales in Receivables 365 Previous Year $ 88,452,000 397,000 $ 88,055,000 365 1.43 0 times 255.24 days
41 Tesla estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2024, Tesla's credit sales and collections were $121,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2024, if $120 in accounts receivable were written off during 2024 and if the allowance account had a balance of $960 on December 31, 2024? Multiple Choice O $42,120 O $31,000 $420 None of these answer choices are correct.
Calculate the missing information on the following revolving credit account. Interest is calculated on the unpaid or previous month's balance. Do not enter the percent symbol in your answer. Round your answers for finance charge and new balance to the nearest cent. Annual Monthly Purchases Payments Previous Percentage Periodic Finance and Cash and New Balance Rate (APR) Rate Charge Advances Credits Balance $2,440.00 $1,281.60 $3,679.00
Shiplt Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and days to collect for 2019. 2. Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2018, when the turnover was 11.2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 2019 2018 $ 5,355 $ 5,060 (265) (270) $ 5,090 $ 4,790 $ 49,000 $ 47,200 Determine the receivables turnover ratio and days to collect for 2019. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turnover Ratio Days to Collect times days
The company has an unadjusted debit balance in Accounts Receivable of $25,000 and an unadjusted credit balance of $10 in Allowance for Sales Discounts as of December 31. Of the $25,000 of receivables, $10,000 are within a 2% discount period that the company expects the buyers to take. Note: Enter debits before credits. Date 12/31 General Journal Debit Credit

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS