
Concept Introduction:
Direct write off method refers to the method in which the debtors which are declared uncollected or bad will be expensed in the income statement directly without transferring to the allowance for doubtful debts.
Liquidity metric days' sale in receivable is a metric made on the basis of measuring the collectibles frequency ability on their due dates. In general, it measures the ability of the company in converting the receivables into cash.
Profitability metric return on sales is the one which helps in analyzing the working performance of the company i.e. its growth, profits and gains and also reflects the relation between the expenses and revenue of the company.
The effect of each transaction on liquidity metric days' sale in receivable and profitable metric return on sales.

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Chapter 6 Solutions
Survey of Accounting (Accounting I)
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- Can you help me solve this general accounting problem using the correct accounting process?arrow_forwardPlease provide the accurate answer to this general accounting problem using appropriate methods.arrow_forwardOzzy Industries planned to use $75 of material per unit but actually used $78 of material per unit. The company planned to produce 2,400 units but actually produced 2,100 units. What is the sales-volume variance?arrow_forward
- In September, one of the processing departments at Stratford Corporationhad beginning work in process inventory of $45,000 and ending work in process nventory of $19,000. During the month, the cost of units transferred out fromthe department was $632,000. In the department's cost reconciliation report for September, the total cost to be accounted for under the weighted-average method would be____. Answerarrow_forwardGeneral accountingarrow_forwardWhat is the amount of the operating cash flowarrow_forward
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