The following is the data from Company X for 2016 and 2017. 2016 2017 Net Sales S800,000 S900,000 Receivables (less allowance for doubtful accounts) Beginning of period End of period $45,000 S60,000 $60,000 $80,000 Required) a) Compute the days' sales in receivables for December 31, 2016, and December 31, 2017, based on Days' sales in receivables = Average accounts receivable/(Sales/365) 2016 S 52,500.00 S 70,000.00 S 2,191.78 S 2,465.75 2017 Average accounts receivable Average daily sales Days sales in receivables b) Compute the accounts receivable turnover for the period ended December 31, 2016, and Decembe 23.95 28.39 Accounts receivable turnover = Sales/(Average accounts receivable)

The following is the data from Company X for 2016 and 2017. 2016 2017 Net Sales S800,000 S900,000 Receivables (less allowance for doubtful accounts) Beginning of period End of period $45,000 S60,000 $60,000 $80,000 Required) a) Compute the days' sales in receivables for December 31, 2016, and December 31, 2017, based on Days' sales in receivables = Average accounts receivable/(Sales/365) 2016 S 52,500.00 S 70,000.00 S 2,191.78 S 2,465.75 2017 Average accounts receivable Average daily sales Days sales in receivables b) Compute the accounts receivable turnover for the period ended December 31, 2016, and Decembe 23.95 28.39 Accounts receivable turnover = Sales/(Average 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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As of December 31, 2017 Cash $ 17,900 Accounts payable $ 29,500 Accounts receivable $ 39,600 Notes payable 15,400 Less: Allowance for doubtful accounts 3,200 36,400 Unearned revenue 3,800 Inventory 61,100 Total current liabilities $ 48,700 Prepaid expenses 7,400 Total current assets $ 122,800 The following errors in the corporation's accounting have been discovered: Keane collected $ 5,200 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company's controller recorded the amount as revenue. 1. The inventory amount reported included $ 2,300 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $ 1,600 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 2. Sales for the first day in January 2018 in the amount of $ 11,100 were entered in the sales journal as of December 31, 2017. Of these, $ 7,000 were sales on…
Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. - Accounts Recievable turnover ratio=? (times) Compute 3M’s average collection period for accounts receivable in days - Average collection period =? (days)
At December 31, 2021, Skysong, Inc. reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts During 2022, the company had the following transactions related to receivables. 1. 2. 3. 4. 5. (a) (b) (c) (d) Sales on account Sales returns and allowances $620,000 42,000 Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible Recovery of accounts previously written off as uncollectible Accounts receivable turnover Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles information provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.) Average collection period $2,810,000 63,000 2,510,000 44,000 15,000 times days
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The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for Doubtful Accounts of $11,783 (credit balance). The company’s total sales during 2019 were $8,350,200. Of these, $1,252,530 were cash sales the rest were credit sales. By the end of the year, the company had collected $6,291,700 of accounts receivable. It also wrote off an account for $10,380. Prepare the journal entry for collections. Account Names DR CR Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read surrounding text. Blank 11.…
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