The following information relevant to accounts receivable is presented for Dharma Initiative (in thousands of dollars). Calculate the accounts receivable turnover ratio, and the days' sales outstanding ratio for the years 2022 and 2023. Do not enter dollar signs or commas in the input boxes. For accounts receivable turnover, round to one decimal place. For days' sales outstanding, round to the nearest whole number. 2023 2022 2021 Accounts Receivable $476 $488 $437 Allowance for Doubtful Accounts $25 $20 $21 Net Credit Sales $2,574 $3,552 $3,654 Accounts Receivable Turnover (in number of times) Answer Answer Days' Sales Outstanding (in days) Answer Answer On January 2, 2023, Dharma Initiative agreed to sell $240,000 of its accounts receivable with a 5% 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. Date Account Title and Explanation Debit Credit Jan 2 AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseCashFactoring ExpenseNotes PayableNotes ReceivablePrepaid InsurancePrepaid Rent Answer AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseCashFactoring ExpenseNotes PayableNotes ReceivablePrepaid InsurancePrepaid Rent Answer AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseCashFactoring ExpenseNotes PayableNotes ReceivablePrepaid InsurancePrepaid Rent Answer To record sale of accounts receivable

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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The following information relevant to accounts receivable is presented for Dharma Initiative (in thousands of dollars). Calculate the accounts receivable turnover ratio, and the days' sales outstanding ratio for the years 2022 and 2023.

Do not enter dollar signs or commas in the input boxes.
For accounts receivable turnover, round to one decimal place.
For days' sales outstanding, round to the nearest whole number.

	2023	2022	2021
Accounts Receivable	$476	$488	$437
Allowance for Doubtful Accounts	$25	$20	$21
Net Credit Sales	$2,574	$3,552	$3,654
Accounts Receivable Turnover (in number of times)	Answer	Answer
Days' Sales Outstanding (in days)	Answer	Answer

On January 2, 2023, Dharma Initiative agreed to sell $240,000 of its accounts receivable with a 5% 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.

Date	Account Title and Explanation	Debit	Credit
Jan 2	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseCashFactoring ExpenseNotes PayableNotes ReceivablePrepaid InsurancePrepaid Rent	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseCashFactoring ExpenseNotes PayableNotes ReceivablePrepaid InsurancePrepaid Rent	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBad Debt ExpenseCashFactoring ExpenseNotes PayableNotes ReceivablePrepaid InsurancePrepaid Rent		Answer
	To record sale of accounts receivable

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